January 2024 Sees Digital Assets AUM Rise Amid US Spot Bitcoin ETF Launches

CCData is an FCA-authorised benchmark administrator and a global leader in digital asset data, providing institutional-grade digital asset data and settlement indices. By aggregating and analyzing tick data from globally recognized exchanges and seamlessly integrating multiple datasets, CCData provides a comprehensive and granular overview of the market across trade, derivatives, order books, historical, social, and blockchain data.

CCData has released the January 2024 edition of its Digital Asset Management Review. The report aims to provide a comprehensive overview of the global digital asset investment landscape, focusing on assets under management, trading volumes, and price performance. Targeting institutional investors, analysts, and regulators, the review aggregates data from multiple sources, including the Financial Times, CoinShares, and Bloomberg.

January 2024 marked a period of nuanced shifts and significant developments, as reported by CCData. The month witnessed a modest uptick in the aggregate assets under management (AUM) across the sector, climbing 1.53% to reach $50.7 billion, according to CCData. This increase came in the wake of notable outflows from Grayscale’s GBTC and a downturn in Bitcoin’s price, highlighting the complex interplay of factors influencing the market as observed by CCData. Additionally, CCData noted that the digital asset sector experienced a remarkable surge in average daily trading volumes, which soared by 224% to $2.19 billion, largely fueled by the introduction of new U.S. ETFs and the entry of heavyweight entities such as VanEck and BlackRock into the market.

The approval of the initial Bitcoin spot ETFs stood out as a landmark event, yet according to CCData, the sector’s total AUM saw only a slight rise, suggesting a period of relative stability. Despite significant withdrawals from Grayscale, CCData reports that the balance was somewhat restored by inflows into the newly minted ETFs. This scenario underscores the evolving landscape of digital asset investment, where traditional outflows are increasingly counteracted by fresh avenues of investment, as per CCData’s analysis.

CCData highlighted that the boost in average daily aggregate trading volumes for digital asset investment products to $2.19 billion in January 2024 marked the fourth consecutive monthly increase, reflecting a broader uptick in market sentiment. This significant rise can be attributed to the newly launched ETFs in the U.S., which have injected new vigor into the market, alongside a general improvement in market sentiment, as observed by CCData.

Grayscale’s outflows, which had been a point of concern, began to show signs of deceleration, as detailed by CCData. Since transitioning to a spot Bitcoin ETF, GBTC witnessed a total of $5.23 billion in outflows. However, CCData noted that this trend started to slow down significantly towards the end of the month, indicating a potential stabilization in investor sentiment towards Grayscale’s offerings.

Despite the challenges, GBTC maintained its stature as a major player in the U.S. ETF sector, boasting an AUM of $21.4 billion, as reported by CCData. Not far behind, BlackRock’s iShares IBIT and Fidelity FBTC each surpassed the $2 billion mark in AUM, showcasing the rapid growth and investor interest in these new entrants, according to CCData. ARK 21Shares’ ARKB and Bitwise BITB also demonstrated strong performance, securing AUMs over $500 million, further evidencing the competitive and diverse nature of the market, as per CCData’s findings.

Grayscale continues to lead the industry with the highest total AUM at $27.8 billion, despite the recent outflows, as highlighted by CCData. The entrance of BlackRock and Fidelity into the market, with AUMs quickly exceeding $2 billion, positioned them as significant contenders, reshaping the competitive landscape, according to CCData. Bitwise, in particular, stood out for its percentage increase in AUM, which surged by 81.2% to $1.32 billion, highlighting the potential for growth and innovation within the digital asset sector, as observed by CCData.