Explosive Growth in Crypto Asset Management: SOL Products Lead the Charge

The crypto asset management industry has witnessed an in October 2023, with total assets under management (AUM) soaring to $31.7 billion—a substantial 6.74% increase and the first positive shift since July. This insight, provided by benchmark administrator CCData, .

As the world watches, Bitcoin-based products have fortified their presence, capturing a whopping 73.3% market share, a leap from 70.5% noted in September. This upward trend is fuelled by the growing optimism surrounding the potential approval of a spot-price exchange-traded fund (ETF), anticipated to come into play early next year.

The AUM has increased for the first time since July. (CCData)

October has undeniably been a month of significant advancements within the digital asset domain. CCData’s report highlights, Six ETH Futures ETFs began trading on October 2, offering investors a new avenue to gain exposure to ETH futures. Following closely, Bitcoin experienced a sharp 7.56% increase in its price, reaching an impressive peak of $30,009. This surge was propelled by rumours around the approval of BlackRock’s ETF application. These pivotal moments have reignited investor interest and bolstered expectations for the upcoming approval of the first spot Bitcoin ETF.

Divergent Trends Across Different Assets

Despite Bitcoin’s dominance, it’s a different story for Ether (ETH), the second-largest cryptocurrency by market capitalization. October saw a 5.45% decrease in AUM for Ether-based products, bringing it down to $6.35 billion and reducing its market share from 22.6% to 20.1%. On the brighter side, Solana’s SOL-based products have outshone others, registering an impressive 74.1% growth in AUM, amounting to $140 million. SOL itself has witnessed a 54% increase in value throughout the month, outperforming Bitcoin’s 26% rise. ATOM-based products have also enjoyed substantial growth, with their AUM increasing by 58.6% to reach $2.15 million. Meanwhile, basket-based products experienced a modest 2.10% increase, settling at an AUM of $1.19 billion.

SOL, ATOM have been the flavour of the month, with BNB, ALGO funds seeing outflows. (CCData)

Conclusion: A Promising Horizon for Crypto Asset Management

October has undeniably been a pivotal month for the crypto asset management sector, marked by Bitcoin’s strengthened position and the explosive growth of SOL-based products. As the industry continues to evolve and attract investor interest, the anticipation surrounding potential regulatory approvals adds an extra layer of excitement.