Executive Summary: Digital Asset Management Review August 2023

While August has been marked by a decline in the overall Assets Under Management (AUM) for digital asset investment products — exacerbated by the significant fall in BTC’s value to a low of $25,375 on August 17th, according to CCData’s Reference Price, CCCAGG — recent developments indicate a potential turnaround.

Following the court ruling in favour of Grayscale on the 29th, its GBTC fund experienced an inflow of capital, adding $1.17 billion to its AUM on August 29th and 30th. The wider digital asset market also experienced a rebound, with market participants speculating if this outcome could push the United States closer to the introduction of its first spot Bitcoin ETF.

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Key takeaways:

• In August, the digital asset market experienced a notable decline in assets under management (AUM), primarily driven by a sharp drop in BTC’s value, which reached a low of $25,345 on August 17th. As of August 25th, the total AUM stood at $29.7bn, marking a decline of 12.7% compared to July. This figure signifies the lowest AUM recorded since February 2023.
• The average daily trading volumes of digital asset investment products saw a substantial 17.9% decline in August, amounting to $208mn. This decline marked the second consecutive decrease and represented the lowest average volume since January 2023.
• Grayscale’s GBTC added $1.17bn to its AUM on the 29th & 30th of August following the verdict announcement, recording a total of $17.4bn AUM, an increase of 7.20%.
• Despite a notable decline in AUM in August, there has been a noteworthy upswing in AUM compared to the beginning of the year. CI Financial achieved the top position, showcasing a remarkable surge of 183% in AUM. Following closely, ProShares and Purpose Invest secured the second and third spots, registering substantial YTD AUM increases of 83.8% and 79.0%, respectively.
• Among the digital asset investment products, 21Shares’ ABTC achieved the highest average daily trading volumes, exhibiting a notable surge of 80.3%. Following closely were ETC Group’s BTCE and XBT Provider’s COINETHE, which registered increases of 50.9% and 28.6% respectively.

Grayscale GBTC Adds $1.17bn in AUM Following Verdict Announcement

Despite witnessing a significant drop in Assets Under Management (AUM) in August, the digital asset market is poised for a rebound following Grayscale’s triumph in its legal battle against the SEC.

Grayscale’s GBTC added $1.17bn to its AUM on the 29th & 30th of August following the verdict announcement, recording a total of $17.4bn AUM, an increase of 7.20%.

Average Daily Trading Volumes Reach Lowest Level Since January 2023

In August, the average daily aggregate volumes of digital asset investment products saw a significant decline, decreasing by 17.9% to a total of $208m. This decrease marked the second consecutive month of decline and represented the lowest average daily volume recorded since January 2023.

CI Financial Leads with 183% YTD Increase in AUM, Despite August Downturn

In August, all digital asset management companies have recorded a decline in AUM influenced by the aftermath of the recent drop in BTC price.

Despite the decline in AUM in August, there has been a noteworthy upswing in AUM compared to the beginning of the year. CI Financial achieved the top position, showcasing a remarkable surge of 183% in AUM. Following closely, ProShares and Purpose Invest secured the second and third spots, registering substantial YTD AUM increases of 83.8% and 79.0%, respectively.

AUM for Bitcoin-based Products Dropped 12.8% to $21bn in August

In August, assets under management (AUM) for Bitcoin-based products dropped by 12.8% to $21bn. This caused their market share to slightly decrease from 70.6% in July to 70.5%.

Similarly, Ethereum-based products experienced a 12.2% decline in AUM, falling to $6.75bn. Despite this drop, their market share actually rose marginally from 22.6% in July to 22.7%. Basket-based products also saw a reduction in AUM by 12.3%, landing at $1.14bn. These products now account for 3.85% of the total market.

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