Assets Under Management Surges Past $50 Billion as Altcoins Record Slight Gains

David Pokima
Last updated: | 2 min read
Source: Adobe / Luisa

Digital assets funds continue their upward momentum as asset prices continue to rise towards the end of the year with growing optimism for an approval of a spot Bitcoin (BTC) ETF in the United States.

Data from CoinShares shows cryptocurrency assets under management (AUM) at $50.2 billion despite outflows recorded by Bitcoin and Ethereum (ETH) in the last seven days bringing an end to the consecutive run of inflows.

Grayscale Investments leads the chart with $33 billion while CoinShares XBT and 21Shares AG follow suit with $2.3 billion and 2 billion respectively. Geographically, the United States leads with $36.6 billion in AUM fanning more speculations on a drive for an ETF approval.

The US lead comes amid several lawsuits against digital asset firms and a dilemma over unclear regulations described by many analysts as hindering a wider market adoption.

Canada and Switzerland come in next with $3.4 billion and $3 billion in AUM. Europe numbers have also increased this year following the Markets in Crypto Assets (MiCA) regulation set to bring uniformity and regulatory certainty in the region.

Institutional investors show a renewed interest in the market as prices rebound after months of declining market sentiment riddled with industry collapses and tougher regulation amid macroeconomic factors.

The second and third quarters of this year witnessed a major turn in investor relations igniting bullish sentiment around the market on the heels of an increasing BTC price.

ETF remains a key driver of fund inflow


A major turning point was the application for a spot BTC ETF by BlackRock and other institutional firms like Fidelity Investments, Valkyrie, WisdomTree, etc gathering support from investors who believe that a new market cycle is imminent should the Securities and Exchange Commission (SEC) give the regulatory nod.

A recurring theme is the long rejection of a spot BTC ETF by the SEC citing market manipulation concerns although most commentators believe an approval is on the horizon following recent activities and amendments of applications.

Due to this, institutional investors and other market participants have flocked to crypto products in recent months particularly around Bitcoin growing its AUM to over $36 billion after it recorded over $1.6 billion in institutional funds this year.

Altcoins uptick slightly boosts AUM


Rising altcoin prices also contribute to an increasing AUM although BTC remains a major factor. ETH notched new entrants after months of outflows which has positioned the asset on $15 million yearly inflows and its AUM at $9.5 billion.

Solana remains an institutional favorite with a total AUM of $588 million after tapping $10.6 million last week. The slight uptick in altcoin prices after the previous correction has been pointed out as a key determinant for the movement into institutional funds.