The Crypto Market Sees Bullish Activity
The prices of most cryptocurrencies have been soaring in recent weeks, reaching levels not seen in over 18 months. Alongside the increase in asset prices, decentralized finance (DeFi) activities are also experiencing high volumes and staking as investors aim to maximize their returns before the year ends.
Growth in Assets Under Management (AUM)
A market report from on-chain analytics firm CCData reveals growth in Assets Under Management (AUM) for virtual asset products. Institutional clients’ interest in DeFi products has remained strong, resulting in a 14% increase to $43.3 billion by the end of November. The figure has since surpassed $45 billion, indicating a growing market.
Digital Asset Funds Record Inflows
According to recent data, digital asset investment products recorded $176 million in inflows last week, marking the tenth consecutive week of positive growth. This brings the year-to-date growth (YTD) of AUM in crypto assets to 120%. However, it is still far below the all-time high of over $74 billion reached in 2021.
Positive Market Forces Drive AUM
The increase in AUM can be attributed to several factors, including growing investor confidence, anticipation for a spot Bitcoin (BTC) ETF, increased participation in the ETF process, and pressure on the Securities and Exchange Commission (SEC). Wealth managers are positioning themselves for an imminent approval of a spot BTC ETF as they anticipate a new liquidity cycle.
Bitcoin Leads Investment Product Inflows
Bitcoin remains the top choice for investment product inflows, with its price surpassing $44,000 and experiencing a 160% increase this year. Ethereum (ETH) products also saw a surge in November, while Solana (SOL) based products experienced a significant spike of 99%.
Trading Volumes of Crypto Assets Under Management
The average daily trading volume of crypto assets under management reached $481 million in November, marking a substantial 35.3% increase from the previous month. This indicates the growing activity and interest in the crypto market.
Hot Take: Crypto Market Continues to Thrive
The recent bullish activity and increasing AUM in the crypto market demonstrate its resilience and growth potential. With rising asset prices, strong DeFi activities, and growing investor confidence, the market is poised for further expansion. The anticipation for a spot Bitcoin ETF approval adds to the positive sentiment surrounding cryptocurrencies. As we enter a new year, it will be interesting to see how these trends evolve and what opportunities they bring for investors and the broader crypto ecosystem.
By
By
By
By