- The aggregate Assets Under Management (AUM) across the digital asset sector saw a modest increase of 1.53%.
- The digital asset industry experienced a significant increase in average daily trading volumes, escalating by 224% to reach $2.19 billion.
- The market dynamics have been significantly altered with the entry of BlackRock and Fidelity. Their AUMs rapidly surpassed the $2 billion mark.
CCData, a global leader in digital asset data, has unveiled significant insights in its January 2024 Digital Asset Management Review. The report provides a comprehensive overview of the global cryptocurrency investment landscape, focusing on assets under management (AUM), trading volumes, and price performance.
January 2024 marked a time of subtle shifts and noteworthy developments. The month witnessed a modest uptick in the aggregate AUM across the sector, climbing 1.53% and reaching $50.7 billion. This increase came despite notable outflows from Grayscale’s GBTC and a downturn in Bitcoin’s price.
The digital asset industry witnessed a significant increase in average daily trading volumes, escalating by 224% to reach $2.19 billion. This increase was primarily driven by the launch of new U.S. Exchange-Traded Funds (ETFs) and the participation of major players like VanEck and BlackRock in the market.
The approval of the first Bitcoin spot ETFs was a noteworthy event. However, the total Assets Under Management (AUM) of the sector only experienced a marginal growth, indicating a phase of relative steadiness. Even though Grayscale saw substantial outflows, the balance was partially reestablished by the capital flowing into the newly introduced ETFs.
Record-Breaking Increase in Digital Asset Trading Volumes Driven by New U.S. ETFs
This situation highlights the dynamic nature of the digital asset investment field, where conventional outflows are progressively balanced by new investment channels. The rise in average daily total trading volumes for digital asset investment products to $2.19 billion in January 2024 signified the fourth successive monthly growth.
This notable increase can be credited to the recently introduced ETFs in the U.S., which have infused new energy into the market. The outflows from Grayscale, previously a matter of worry, started to display indications of slowing down. Following its conversion to a spot Bitcoin ETF, GBTC experienced a total outflow of $5.23 billion.
According to CCData, the market dynamics have been significantly altered with the entry of BlackRock and Fidelity. Their assets under management (AUMs) rapidly surpassed the $2 billion mark, establishing them as formidable players in the market. This development has led to a substantial transformation of the competitive landscape.
In conclusion, CCData’s January 2024 review offers valuable insights into the digital asset market. It highlights the complex interplay of factors influencing the market and underscores the significant impact of the launch of spot Bitcoin ETFs in the U.S.