Crypto AUM Declines 28% in May Due to Market Crash

The growing cryptocurrency investment instruments showed the institutional demand for the new asset class. However, the area took a massive hit with the recent slump in cryptocurrency prices.

The total asset under management (AUM) across all digital asset products stood at $34.2 billion by the close of 26 May, which was a monthly decline of 28.6 percent, according to a CryptoCompare report.

The AUM of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, which holds the largest share of crypto investment products, alone slumped by 26.8 percent to $24 billion. Ethereum’s AUM witnessed a further steep decline of 33.9 percent to $8.52 billion. The AUM of the 'Others' and 'Baskets' category went down by 30.1 percent to $1.18 billion and 32.7 percent to $509 million, respectively.

The digital asset AUM of all companies witnessed a dip. Moreover, Grayscale, which holds the AUM with digital assets, saw the steepest fall of $10.6 billion, taking its AUM to $25.7 billion. It was a monthly decline of 29.1 percent.

Meanwhile, the market share of Bitcoin investment instruments strengthened by 70.1 percent of the total AUM.

Market Crash

In the same time frame, the value of Bitcoin dropped by 27.3 percent, while Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term saw a price slump of 38.1 percent. In addition, traditional capital markets have suffered heavily this month, with the S&P 500 falling 5.01 percent.

“Macro sentiment around risk-assets has been the leading narrative in the markets, with the Fed’s hawkish behavior and the ongoing conflict in Ukraine, leading to increased levels of fear amongst market participants,” the report highlighted.

Meanwhile, the net inflows of cryptocurrencies have witnessed a significant change this month. The weekly figures averaged $66.5 million compared to the average weekly outflows of around $49.6 million in April. For Bitcoin-based products, the weekly average inflows averaged $63.4 million, while Ethereum products have seen a weekly outflow of $13.2 million.