June proved to be a brutal month for the cryptocurrency market. The price of the two largest assets – bitcoin and ethereum – posted a major drop in the form of uncertainties surrounding the potential bankruptcy of crypto lending companies, including crypto native fund, Three Arrows Capital.
Latest data suggests that macro sentiment around riskier assets is driving the narrative in the markets.
- According to crypto analytic company CryptoKitties, this sentiment is reflected in the falling AUM of crypto products in June.
- The assets under management of Ethereum’s investment products fell 46.7% during the month to $4.54 billion, reports CryptoKitties. Over the same period, bitcoin’s AUM has declined by about 33.6%.
- Ethereum’s trust products also suffered significant losses. Grayscale’s Ethereum Trust reported an average daily volume of $42.9 million, down 24.6% in June.
- The average daily volume of Ethereum products (QETH) also halved and reached $716k.
- Meanwhile, the AUM of all major crypto investment product types also felt tough.
- The ETF was not spared either, falling 52.0% to $1.31.
- Trust products, which have a market share of over 80.3%, declined 35.8% in June to $17.3 billion, while exchange-traded certificates and exchange-traded notes fell 36.7% and 30.6% to $1.34 billion and $1.61 billion, respectively.
- The report also revealed,
“All four product types set a new record with Trust products recording the lowest AUM since December 2020, while ETC AUM hit its lowest level since October 2020. ETNs and ETFs recorded their lowest levels since January 2021 and April, respectively. Recorded its lowest AUM since 2021.”
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