• Institutional crypto products saw a 1.81% increase in daily aggregate volumes, marking the second consecutive month of growth.
• The U.S. retained its dominant position with 78% market share in digital asset investment products.
• Bitcoin-based investment products led the AUM growth by virtue of their market share, some other assets contributed healthily on account of positive developments in their respective ecosys
Institutional Crypto Products Witness Second Month of Growth
Institutional crypto products saw a 1.81% increase in daily aggregate volumes, marking the second consecutive month of growth during July 2023. The U.S. maintained its dominant position with 78% market share in digital asset investment products while Bitcoin-based investments led the AUM growth by virtue of their market share and other assets contributing due to positive developments in respective ecosystems.
U.S.’s Dominant Market Share
The U.S retained its prominent position with 78% market share in digital asset investments for July 2023 as per a report from digital assets data provider CCData, up from 70.7% the previous month June 2023 . This was primarily driven by the formal admission of Blackrock’s and other TradFi institutions’ spot Bitcoin [BTC] exchange traded fund (ETF) applications for regulatory scrutiny after previously judging them as “inadequate” by US Securities and Exchange Commission (SEC).
YTD Growth & Low Volatility Impact
On a year-to-date (YTD) basis, total assets under management (AUM) recorded an impressive 71% increase at $33 billion USD despite a marginal 1.14% rise than last month June 2023 due to low volatility impacting trading values throughout July 2023, where Bitcoin wobbled in a tight range between $29k-$31k USD .
Bitcoin Investment Products Led AUM Growth
Bitcoin investment products held a strong 71% market share as per report, leading to slight AUM increment 0f 0 .5%. This was spurred by unprecedented investor optimism around Bitcoin ETFs and positive developments within respective crypto ecosystems which catalyzed further growth beyond expectations .
July extended broader market confidence towards cryptocurrencies diminishing late-June’s blip and translating into marginal increases for institutional crypto products within daily aggregate volumes across 2 months consecutively , boosting adoption for investment purposes and providing investors with an attractive alternative to traditional markets for long term gains .