• The value of digital assets under management (AUM) for digital asset investment products in February rose to a high of $28.3 billion.
• Bitcoin and ethereum continue to account for the lion’s share of these assets under management.
• Grayscale is still the most dominant asset management firm with $20.8 billion worth of digital assets under management.
Digital Assets Under Management Increase
The value of digital assets under management (AUM) for digital asset investment products in February rose to a high of $28.3 billion, according to Cryptocompare stats, the highest number recorded since May 2022. This increase came against the background of rising U.S. Securities and Exchange Commission (SEC) enforcement actions against crypto industry players, as well as macroeconomic setbacks.
Largest Share Held by Bitcoin and Ethereum
Bitcoin and ethereum continue to account for the lion’s share of these assets under management, with an increase in AUM for Bitcoin up 6.06% and Ethereum up 1.72%, reaching $20 billion and $6.80 billion respectively – making them account for 70.5% and 24% market share respectively, according to Cryptocompare data analysis . Other „basket“ assets also saw an increase at 14.7% to $1.16 billion and 2.33% to $413 million respectively..
Grayscale Dominates Asset Management
Grayscale remains the most dominant asset manager with a total AUM value at $20.8 billion, followed by XBT Provider ($1.54 billion) and 21Shares ($1-38billion).
Correlation Between Digital Assets & Traditional Assets
The correlation between digital assets investment products and traditional assets has recently stabilized and is expected to decrease as innovation continues in this space, according to Cryptocompare report findings .
Overall, the increasing appetite from investors into digital asset investments shows no signs of slowing down despite macroeconomic setbacks or regulatory action from SEC enforcement against crypto industry players indicating that cryptocurrency related investments are becoming increasingly mainstream despite regulatory challenges faced by many operators in this space