According to a survey released by CCData, assets under management (AUM) for cryptocurrency investment products increased for the fifth straight month in April, rising 6.94% to $35.6 billion. This year, they saw an increase in AUM of 59.9%.
The increase highlights a resurgence of interest in digital assets caused by conventional financial failures and market volatility. AUM for goods based on Bitcoin ($BTC) and Ethereum ($ETH) increased by 6.34% and 8.72%, respectively, for a total of $24.2 billion for BTC and $7.85 billion for ETH-based products.
According to CCData’s latest Digital Asset Management Review report, a surge in ETH-based products occurred after the Shapella network update, which allows investors to withdraw staking ETH, was successfully implemented.
Despite a decrease of 27.2% to $277 million in aggregate daily average product volume in April across all digital asset investment products, the report notes that this is still high compared to the average trading volume recorded in 2022. After a substantial outflow in March, net flows for BTC-based goods changed course and recorded a positive net flow of $30.78 million.
Although Shapella Upgrade increased AUM for ETH-based products, BTC-based products still dominate the digital asset market. While ETH-based products have remained largely stable, with only a slight decrease from 24.8% to 23.4%, their market share increased from 69.9% in January 2023 to 72.0% in April thanks to this product.
The research also noted that Bitcoin-based short products had their largest weekly outflow in 2023, likely due to BTC’s bullish momentum and sharp price increases that month.