In June, AUM for Ethereum-Based Investment Products fell by 50%. (Report)


During the recent market instability, Ethereum plummeted by more than 50% from its high, and ETH-based investment products also saw a fall.

The bitcoin market had a terrible month in June, as it turned out. Bitcoin and Ethereum, the two most valuable assets, saw significant drops in price as concerns about the potential bankruptcy of crypto lending firms, notably the crypto native fund Three Arrows Capital, began to surface.

The most recent statistics indicate that market narrative is still being driven by macro sentiment about risk assets.

This pessimism, according to the cryptocurrency analytics firm CryptoCompare, was mirrored in the declining AUM of crypto products in June.

According to a research by CryptoCompare, the assets under management for Ethereum’s investment products decreased by 46.7 percent during the month to $4.54 billion. The AUM of Bitcoin decreased by over 33.6% throughout that time.

Moreover, Ethereum’s trust-related goods suffered significantly. For example, Grayscale’s Ethereum trust had a decline of 24.6 percent in June, with an average daily volume of $42.9 million.

Additionally, the amount of Ethereum-related items (QETH) traded each day decreased by 50% to $716k.
The AUM of all significant crypto investment product kinds also felt difficult at the time.

ETFs were not exempt either; they too saw a decline, plunging 52.0 percent to $1.31.

Trust products, which account for more than 80.3 percent of the market, saw a decrease of 35.8 percent to $17.3 billion in June, while ETCs and ETNs had declines of 36.7 percent and 30.6 percent, respectively, to $1.34 billion and $1.61 billion.
The investigation also found,

“All four product types made new record lows with Trust products recording the lowest AUM since December 2020, while ETCs AUM reached its lowest since October 2020. ETNs and ETFs followed, recording their lowest AUM since January 2021 and April 2021 respectively.”