A report by CryptoCompare for the month of July has said there is a decline in trading activities and a drop in the total Assets Under Management (AUM) in the digital asset investment markets. The Bitcoin fell below the $30,000 limit and Ethereum below $2,000.
The AUM also dropped 14 percent compared to June as was the aggregate trading volumes that fell by 35.4 percent to $34.8 billion across all investment product markets. The average daily volumes now stand at $319 million. The trading activity in investment products continued to slow with the average daily volumes of $319 million still down by 35 percent in July when compared to June.
Though there was a decrease in trading activity and a drop in the AUM, the net investments in July turned positive. The net inflows increased to $58.5 million when compared to the net outflow of $59.5 million in the month of June.
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Grayscale, a unit of Digital Currency Group which also owns CoinDesk, in the report, said Grayscale products represent the majority of AUM at $27.9 billion (80.1 percent of total) followed by XBT Provider ($2.7 billion, 7.8 percent of total) and 21Shares ($949 million, 2.7 percent of total).
Grayscale’s bitcoin trust product (GBTC) sustained its majority share of trust product volume at 59.1 percent. However, the average daily volume for GBTC was down 37 percent to $160 million while the average daily volumes of ETNs and ETFs fell by 50.4 percent in July.
The report further said digital assets compared to traditional assets have a long way to go. Risk-averse investors are still not confident of investing in digital assets.
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