The latest data from Cryptocompare shows that assets under management (AUM) of crypto investment products hit a record low in June. The data also shows that 21 Shares Short Bitcoin ETP is the only digital investment product to post a positive 30-day return (30.8%) as of June 23.
Three Arrows Capital bankruptcy factor
The AUM of crypto investment products fell to record lows in June 2022, the latest data from Cryptocompare shows. According to the regulated benchmark administrator and data company for digital assets, this decline in AUM was mainly caused by uncertainties surrounding the future of crypto lending companies such as Three Arrows Capital.
As the data shows, crypto exchange-traded funds (ETFs) saw the biggest decline, down 52.0% to $1.31 billion in assets under management. On the other hand, trust products, which account for 80.3% of the market, fell 35.8% to end the month at $17.3 billion. Exchange-traded commodities (ETCs) and exchange-traded notes (ETNs) fell 36.7% and 30.6%, respectively, to $1.34 billion and $1.61 billion. In summary, Cryptocompare said:
All four product types hit new record lows, with Trust products posting their lowest AUM since December 2020, while ETCs AUM hit their lowest since October 2020. ETNs and ETFs followed, posting their lowest AUM since January 2021 and April 2021, respectively.
21 Stock Bucks Trend
Meanwhile, the report notes that 21 Shares Short Bitcoin ETP is the only digital investment product to post a positive 30-day return (30.8%) as of June 23. As of June 27, the ETP had $16.5 million in assets under management, an all-time high for the product. After rising for three straight months, this ETP has emerged as one of the few products that appears to be taking advantage of current market conditions, the report said.
In contrast to the 21 Shares, Purpose and Coinshares ETPs, the biggest outflows were in BTC and ETH over the same period.
“Purpose Bitcoin ETF (BTCC) sold 18,170 BTC, while 3iq Coinshares Bitcoin ETF (BTCQ) sold 7,384 BTC from the fund (as of June 24). Overall, the two saw assets under management down 56.7% and 57.1%, respectively, in June. Proshares Bitcoin Strategy ETF (BITO) saw its biggest inflow after buying 7,264 BTC over the month,” reads the digital asset data company’s report.
The data also shows that 3iq Coinshares Ether ETF (ETHQ) recorded the largest outflow among Ethereum products over the period, with an outflow of 26,499 ETH. It was followed by Purpose Ether ETF (ETHH), which saw an outflow of 24,409 ETH in June.
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