As investors’ trust returns, total assets under management for crypto investment products increased 36.8% in January to $19.7 billion, the highest reported assets under management (AUM) since May 2022.
According to CryptoCompare‘s latest Digital Asset Management Review report, bullish sentiment in the market was spurred by a short squeeze, which caused short sellers to liquidate their positions, and a positive economic outlook, as demonstrated by the latest Consumer Price Index (CPI) data. Bitcoin reached its highest level since August 2022, at $23,000.
Despite the recent increase, the AUM of crypto investment products is still much smaller than in January 2022. This is because Bitcoin, the larger cryptocurrency market, and conventional assets have had a challenging year. According to the research, AUM for Bitcoin and Ethereum products has decreased by 38.7% and 39.2%, respectively, since January 2022.
According to the research, average daily aggregate product volumes across crypto investment products increased by 30% in January, reaching $72.5 million. Books, on the other hand, are still down 84.4% from January 2022 and 95.2% from their all-time high, which was set in January 2021.
Nonetheless, January had the highest weekly net inflow since November 2022, with $36.8 million each week. The current bull market “increased investor confidence in the market and the digital asset investment universe,” according to the rise.
According to the research, short Bitcoin-based goods had the most significant net flows last month, with $12.0 million, followed by Bitcoin-based products with $7.9 million and Ethereum-based products with $4.9 million.
Notably, the Securities and Exchange Commission (SEC) of the United States has rejected for the second time the ARK 21 Shares Bitcoin ETF submitted by ARK Investment and 21Shares for listing on the CBOE BZX Equities Exchange. The denial was based on the SEC’s claim that the exchange did not meet SEC fraud-prevention requirements. So far, the SEC has approved no Bitcoin ETF based on the spot market.
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