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 , 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 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.
