While August has been marked by a decline in the overall Assets Under Management (AUM) for digital asset investment products — exacerbated by the significant fall in BTC's value to a low of $25,375 on August 17th, according to CCData's Reference Price, CCCAGG — recent developments indicate a potential turnaround.
Following the court ruling in favour of Grayscale on the 29th, its GBTC fund experienced an inflow of capital, adding $1.17 billion to its AUM on August 29th and 30th. The wider digital asset market also experienced a rebound, with market participants speculating if this outcome could push the United States closer to the introduction of its first spot Bitcoin ETF.
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Key takeaways:
- In August, the digital asset market experienced a notable decline in assets under management (AUM), primarily driven by a sharp drop in BTC's value, which reached a low of $25,345 on August 17th. As of August 25th, the total AUM stood at $29.7bn, marking a decline of 12.7% compared to July. This figure signifies the lowest AUM recorded since February 2023.
- The average daily trading volumes of digital asset investment products saw a substantial 17.9% decline in August, amounting to $208mn. This decline marked the second consecutive decrease and represented the lowest average volume since January 2023.
- Grayscale’s GBTC added $1.17bn to its AUM on the 29th & 30th of August following the verdict announcement, recording a total of $17.4bn AUM, an increase of 7.20%.
- Despite a notable decline in AUM in August, there has been a noteworthy upswing in AUM compared to the beginning of the year. CI Financial achieved the top position, showcasing a remarkable surge of 183% in AUM. Following closely, ProShares and Purpose Invest secured the second and third spots, registering substantial YTD AUM increases of 83.8% and 79.0%, respectively.
- Among the digital asset investment products, 21Shares' ABTC achieved the highest average daily trading volumes, exhibiting a notable surge of 80.3%. Following closely were ETC Group's BTCE and XBT Provider's COINETHE, which registered increases of 50.9% and 28.6% respectively.
Grayscale GBTC Adds $1.17bn in AUM Following Verdict Announcement
Despite witnessing a significant drop in Assets Under Management (AUM) in August, the digital asset market is poised for a rebound following Grayscale's triumph in its legal battle against the SEC.
Grayscale’s GBTC added $1.17bn to its AUM on the 29th & 30th of August following the verdict announcement, recording a total of $17.4bn AUM, an increase of 7.20%.
Average Daily Trading Volumes Reach Lowest Level Since January 2023
In August, the average daily aggregate volumes of digital asset investment products saw a significant decline, decreasing by 17.9% to a total of $208m. This decrease marked the second consecutive month of decline and represented the lowest average daily volume recorded since January 2023.
CI Financial Leads with 183% YTD Increase in AUM, Despite August Downturn
In August, all digital asset management companies have recorded a decline in AUM influenced by the aftermath of the recent drop in BTC price.
Despite the decline in AUM in August, there has been a noteworthy upswing in AUM compared to the beginning of the year. CI Financial achieved the top position, showcasing a remarkable surge of 183% in AUM. Following closely, ProShares and Purpose Invest secured the second and third spots, registering substantial YTD AUM increases of 83.8% and 79.0%, respectively.
AUM for Bitcoin-based Products Dropped 12.8% to $21bn in August
In August, assets under management (AUM) for Bitcoin-based products dropped by 12.8% to $21bn. This caused their market share to slightly decrease from 70.6% in July to 70.5%.
Similarly, Ethereum-based products experienced a 12.2% decline in AUM, falling to $6.75bn. Despite this drop, their market share actually rose marginally from 22.6% in July to 22.7%. Basket-based products also saw a reduction in AUM by 12.3%, landing at $1.14bn. These products now account for 3.85% of the total market.
The information provided by this report does not constitute any form of advice or recommendation by CCData. Any redistribution of charts appearing in this Review must cite CCData as the sole provider and creator.
About CCData
CCData is an FCA-authorised benchmark administrator and global leader in digital asset data, providing institutional-grade digital asset data and settlement indices. By aggregating and analysing tick data from globally recognised exchanges and seamlessly integrating multiple datasets, CCData provides a comprehensive and granular overview of the market across trade, derivatives, order book, historical, social and blockchain data.
