Institutional Crypto Investment Products’ Trading Volumes Drop to Two-Year Low

The daily aggregated trading volume of institutional cryptocurrency investment products has fallen to a two-year low at a time in which the prices of most cryptoassets kept on trading sideways during the bear market.

According to CryptoCompare’s latest Digital Asset Management Review report, digital asset products have seen their assets under management (AUM) start to recover last month following a “painful September,” as AUM rose 1.76% in October to $22.9 billion, as of the 25th.

The firm’s report notes that this is the first increase in AUM since July of this year, and that the figure is still significantly below what was seen during this year’s market peak in March. Last month, the average daily aggregate product volumes across all crypto investment products plunged 34.1% to $62.3 million in October, in the continuation of a downward trend in volumes since November 2021 that only briefly stopped for a 0.39% rise in May.

The report adds that October was the second month since September 2020 in which average daily volumes fell below $100 million.

Source: CryptoCompare

Despite the falling trading volume, CryptoCompare’s latest Digital Asset Management Review details that the assets under management of Bitcoin and Ethereum-based investment products rose 2.55% and 3.35% respectively, with trust products seeing their AUM rising 2.33% to $17.7 billion to increase their market share to a five-month high of 77.3$.

Notably, Bitcoin-focused products had mixed results in the last 30 days with returns ranging from -4.7% to 2.7%, while Ethereum-based products had returns ranging from -22.1% to 0.8%. Over the same period, BTC rose 3.38% against the U.S. dollar, while ETH rose 9.9%.

The report details that institutional preference for BTC products was observed in October through average weekly flows. It reads:

BTC products experienced weekly inflows of $8.37mn, whilst ETH products experienced outflows of $5.03mn. This may be caused by the uncertainty surrounding the macroeconomic climate, as investors look to invest in safer crypto-based products.

As CryptoGlobe recently reported, there are several analysts bullish on BTC as traders are preparing for a “big move” on the market, at a time in which the flagship cryptocurrency’s volatility has dropped below that of the stock market’s benchmark index, the S&P 500.

Recently, Ark Investment Management’s Elmandjra has defended the firm’s prediction that the price of the flagship cryptocurrency BTC will top $1 million in the future.

Elmandjra defended a price prediction made by the fund manager of Ark’s flagship innovation-themed exchange-traded funds (ETFs), Cathie Wood, that BTC would top $1 million by 2030.

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