Interest in Crypto Investment Products Weakens Further in July

Interest in cryptocurrency investment products continued to decline in July as the price of bitcoin fell below the $30,000 threshold.

A new report from CryptoCompare highlights the decline in trading activity as well as a drop in total assets under management (AUM) in the digital asset investment sphere.

Compared with traditional asset classes, digital asset markets still have a “long way to go before more risk-averse investors are fully at ease,” according to CryptoCompare.

Key findings from the report include:

Since June, total assets under management across exchange and over the counter-traded digital asset investment products decreased by 14% to $34.8 billion according to the report.

“Grayscale products represent the vast majority of AUM at $27.9bn (80.1% of total) followed by those of XBT Provider ($2.7bn, 7.8% of total) and 21Shares ($949mn, 2.7% of total)” according to the report. (Grayscale is a unit of Digital Currency Group, which also owns CoinDesk.)
The report also found that trading activity in the investment products continued to slow, with aggregate daily volumes of $319 million, down 35% so far in July compared with June levels. Grayscale’s bitcoin trust product (GBTC) sustained its majority share of trust product volume at 59.1%. However, average daily volume for GBTC was down 37% to $160 million
Despite the decrease in trading activity and drop in AUM, net investment flows turned positive in July. Net inflows increased to $58.5 million, in comparison to net outflows of $59.5 million in June.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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Interest in Crypto Investment Products Weakens Further in July: Report

The decline comes as the price of bitcoin fell below the $30,000 threshold.

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