Cryptocurrency Market

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Digital Assets Under Management 5.25% Higher in February — Grayscale Still ‘Most Dominant Player’

The value of digital assets under management (AUM) for digital asset investment products in February rose to $28.3 billion, the highest number recorded since May 2022, according to Cryptocompare stats. The increase came against the background of rising U.S. Securities and Exchange Commission (SEC) enforcement actions against crypto industry players. Bitcoin and ethereum continue to account for the lion’s share of the digital assets under management.

Highest AUM Since May

The total U.S. dollar value of digital assets under management (AUM) in February rose to $28.3 billion up from approximately $26.8 billion recorded in January, the latest Cryptocompare data has shown. The latest total makes this the “highest AUM recorded since May 2022,” the report added.

According to a report released by Cryptocompare, a digital asset data provider, the latest AUM increase “signalled the bullish sentiment of investors and the increased appetite for digital assets.” The increase in the investor’s appetite for digital assets came against the backdrop of a U.S. Securities and Exchange Commission (SEC)-led crackdown on industry players. The report also noted that the increase came against the background of what it described as “macroeconomic setbacks.”

As has been the case in the past, bitcoin (BTC) and ethereum (ETH) accounted for the lion’s share of all digital assets under management in February.

“The assets under management (AUM) for Bitcoin and Ethereum-based products saw an increase of 6.06% and 1.72%, respectively, reaching $20 billion and $6.80 billion. As a result, these products now account for 70.5% and 24.0% of the total AUM market share,” the Cryptocompare report said.

The report also noted that just like BTC and ETH, digital assets that are included in the category of “Other” and “Basket” assets had similarly increased by “14.7% to $1.16 billion and 2.33% to $413 million, respectively.”

Grayscale Still Rules the Roost

Meanwhile, the Cryptocompare report noted that Grayscale is still the most dominant asset management firm with $20.8 billion worth of digital assets under management. XBT Provider ($1.54 billion) and 21Shares ($1.38 billion) are ranked second and third, respectively.

Concerning the correlation between digital assets investment products and traditional assets, the report noted that this had “recently stabilized and is expected to decrease as innovation fuels interest for digital assets.”

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