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Trading Volumes of Crypto Assets Under Management Averaged $481 Million Daily in November: Report

David Pokima
Last updated: | 2 min read
Source: Pixabay / Michael Wuensch

The digital asset market has recorded massive bullish activity in recent weeks with the prices of most cryptocurrencies soaring to positions not seen in over 18 months.

Aside from asset prices, decentralized finance (DeFi) activities are also high in terms of volumes and staking as investors look to reap rewards before the end of the year.

A recent market report from on-chain analytics firm CCData shows growth in Assets Under Management (AUM) around virtual asset products, weekly inflows, and renewed appetite by firms and investors for a spot Bitcoin (BTC) ETF.

Per the data, institutional clients’ interest in DeFi products maintained momentum in October and bolstered 14% to $43.3 billion at the end of November although at press time, the figure is above the $45 billion mark, a sign of a growing market.

The recent rise means the AUM in crypto assets has seen a year-to-date growth (YTD) of 120% although the current bullish drive is still way below its all-time high in 2021 when it surpassed $74 billion.

A notable finding from the research is the daily average of trading volume which stood at $481 million climbing a massive 35.3% from the previous month.

The bull run of 2021 which drives the market was stunted following rapid inflation in most traditional markets leading to tightening measures that made investors withdraw from risky assets and low trader sentiments caused by industry collapses.

On-chain data points to an uptick in AUM towards the end of the second quarter when spot Bitcoin ETF applications began taking shape and decentralized applications (DApps) volume surged.

Positive market forces spiked AUM

According to the report, the uptick recorded in AUM is based on several factors including growing investor confidence, increased anticipation for a spot BTC ETF, more participants in the ETF process, and pressure towards the Securities and Exchange Commission (SEC).

Last month saw strategic moves by firms involved in the ETF process as Fidelity, WisdomTree, BlackRock, Grayscale, etc all met with the financial regulator to either amend filings or discuss further prospects and receive feedback from the Commission.

While the SEC is yet to approve any spot Bitcoin ETF applications citing possible market manipulation concerns many wealth managers are positioning for an imminent approval as the market expects a new liquidity cycle.

Bitcoin’s uphill run has been instrumental to the rise in AUM as the market leader remains top in terms of investment product inflows. Bitcoin exchanges hands at over $44,000 up by 160% this year with investment products recording 12% in November and standing slightly over $31.8 billion.

Ethereum (ETH) products also surged last month after previous losses. The leading altcoin products grew by 12% to hit $1.75 billion while Solana (SOL) based products spiked 99% pushing its AUM to $424 million.