Benzinga - Digital asset investment products recorded a 5.25% increase in assets under management (AUM) in February, reaching $28.3 billion, marking the third consecutive monthly increase and the highest AUM recorded since May 2022.
This signifies investors' bullish sentiment and their increased appetite for digital assets, despite the recent SEC enforcements on multiple firms in the industry, including Paxos, Terraform Labs (CRYPTO: LUNC), and Robinhood (CRYPTO: HOOD), among others, as well as macroeconomic setbacks, according to a report by CryptoCompare.
The assets under management (AUM) for Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) based products saw an increase of 6.06% and 1.72%, respectively, reaching $20.0 billion and $6.80 billion. As a result, these products now account for 70.5% and 24.0% of the total AUM market share.
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In addition, the AUM for "Other" and “Basket” assets also saw an increase of 14.7% to $1.16 billion and 2.33% to $413 million, respectively.
Bitcoin-based products reached their highest market share since June 2022.
CI Galaxy recorded the highest increase in AUM, rising 37.7% to $460 million, followed by 21Shares with a 33.4% increase to $1.38 billion in February.
Grayscale remains the dominant player with products recording a total AUM of $20.8 billion, a 3.02% increase compared to last month, followed by XBT Provider ($1.54 billion) and 21Shares ($1.38 billion).
Investors are showing an increasing interest in digital assets despite regulatory challenges, signaling the growth potential of the industry.
The rising trend of AUM and the increase in the market share of Bitcoin and Ethereum-based products indicate the maturity of the market and the growing confidence of investors in digital assets.
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