Asset administration and danger administration are crucial elements of any funding technique, and the digital asset house is not any exception. With the volatility and complexity of the crypto market, it’s important for traders to watch their investments and assess their danger publicity rigorously.
CryptoCompare, a number one digital asset knowledge supplier, has launched its month-to-month Digital Asset Administration Assessment, which supplies an summary of the worldwide digital asset funding product panorama.
Methodology
The report tracks the adoption of digital asset merchandise by analyzing belongings below administration, buying and selling volumes, and worth efficiency. The evaluation drew knowledge from varied sources, together with Monetary Occasions, 21Shares, Coinshares, XBT Supplier, Grayscale, OTC Markets, HanETF, Yahoo Finance, 3iQ, Goal, VanEck, ByteTree, Nordic Progress Market, Bloomberg, and CryptoCompare.
Key Findings
Digital asset investments continued their upward development in February, with the full belongings below administration (AUM) for digital asset funding merchandise reaching a brand new excessive of $28.3 billion.
This represents a 5.25% improve from January, the third consecutive month-to-month improve in AUM. The AUM surge alerts traders’ bullish sentiment and a rising urge for food for digital belongings.
Bitcoin and Ethereum-based merchandise skilled elevated belongings below administration (AUM) in February. BTC-based merchandise noticed an increase of 6.06%, bringing the full AUM to $20.0 billion, whereas ETH-based merchandise noticed a 1.72% improve, bringing the full AUM to $6.80 billion. In consequence, BTC and ETH merchandise now account for 70.5% and 24.0% of the full AUM market share, respectively.
Throughout February, CI Galaxy had the very best improve in belongings below administration (AUM), with an increase of 37.7% to $460 million. Following intently was 21Shares, which noticed a 33.4% improve to $1.38 billion. Regardless of these positive factors, Grayscale continued to carry the dominant place, with merchandise recording a complete AUM of $20.8 billion, representing a 3.02% improve in comparison with the earlier month. XBT Supplier ($1.54 billion) and 21Shares ($1.38 billion) adopted Grayscale because the market’s second and third-largest gamers.
Based on the newest report for February 2023, the typical day by day combination product volumes throughout all digital asset funding merchandise noticed a slight decline of 9.39% to $73.3 million.
In comparison with December 2022, volumes have elevated by 21.5%. Regardless of this enchancment, volumes are nonetheless down by 80.1% in comparison with February 2022, indicating the unstable nature of the market.
BTC-based merchandise remained dominant by way of weekly web flows, with each BTC-based merchandise and Brief BTC merchandise recording constructive flows of $5.3 million and $4.6 million, respectively.
DCG’s resolution to promote its positions in Grayscale Belief Merchandise was pushed by its want to boost funds. Some of the important gross sales was roughly 25% of its Ethereum Belief (ETHE) at a reduction of round 50% of the belief’s worth, in accordance with a report from the Monetary Occasions cited within the report.
The total CryptoCompare’s Digital Asset Administration Assessment report could be discovered right here.