Bitcoin’s AUM Takes a Dive
The Bitcoin assets under management (AUM) experienced a significant decline in November, plummeting by 9.5% to $48.7 billion. This drop marks the steepest month-on-month fall since July, reflecting a shifting landscape in the cryptocurrency market where investors are becoming increasingly skeptical of Bitcoin’s inflation-hedging capabilities.
Ethereum on the Rise
In stark contrast, Ethereum is surging ahead, with its AUM climbing 5.4% to reach a total of $16.6 billion. As Bitcoin struggles to maintain its footing, altcoins like ETH are starting to capture the attention of crypto fans seeking new havens. It appears that Ethereum’s recent rally is ticking all the right boxes for investors eager for growth.
The Broader Market Context
The digital asset market as a whole saw a decline, with the total AUM dropping by 5.5% to $70 billion. This decline coincides with a bear market that has gripped the industry since Bitcoin hit its record high of over $65,000. It seems that the crypto excitement is fading, and only the most resilient assets, like Ethereum, are finding their way back into pockets.
The Dominance of Grayscale
Interestingly, Grayscale products still dominate the AUM landscape, accounting for a staggering 76.8% of the market. However, even they aren’t immune to the market’s downturn; their assets dropped by 6.8% to $54.5 billion. Other significant players like XBT Provider and 21Shares also play a role, holding $5 billion and $2.5 billion in AUM, respectively. The battle for supremacy among crypto assets is heating up!
Weekly Flow Dynamics
A closer look at the weekly inflows reveals that Bitcoin-based products averaged $94.4 million in November. Ethereum’s portion of this influx was around $24.4 million, while Cardano and Tron were not far behind with approximately $10.7 million and $10.5 million, respectively. It looks like investors are diversifying their portfolios as they seek to ride the wave of crypto’s evolution.
Institutional Involvement: Morgan Stanley Steps Up
Adding to the intrigue, Morgan Stanley has reportedly ramped up its Bitcoin exposure through Grayscale Bitcoin Trust shares. Their recent SEC filing disclosed a whopping 63% increase in their holdings, solidifying a portfolio that values direct Bitcoin engagement without diving into the murky waters of crypto wallets. With a market price nearing $45 per share, Morgan Stanley’s Bitcoin-centric assets now total over $300 million. Talk about putting your money where your mouth is!
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