[Bitcoin Now] Reviving Coin Market... Increasing Trend in Assets Under Management

Ethereum Vertical Surge Impact
Bitcoin Uptrend Also Driven
AUM Increases 17% Compared to Previous Month

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the prices of major coins such as Bitcoin and Ethereum rise and the total market capitalization of cryptocurrencies recovers to $1 trillion, the assets under management (AUM) of digital asset investment products have also recorded an increasing trend again.

According to cryptocurrency data analysis firm CryptoCompare on the 1st, from the 1st to the 26th of last month, the AUM of digital asset investment products increased by 16.9% compared to the previous month, reaching $25.9 billion (approximately 33.77 trillion KRW).

The AUM of digital asset investment products had been declining since April. In April, it decreased by 1.34% compared to the previous month, and in May and June, it dropped by 28.6% and 36.8% respectively compared to the previous months. CryptoCompare described the past few months as a period of upheaval in the digital asset market.

However, last month, this trend reversed with a successful rebound, particularly influenced by the strong upward trend of Ethereum. Ethereum’s price soared vertically from the $1,000 range at the beginning of last month to the $1,700 range. Currently, the Ethereum 2.0 update is underway, which involves transitioning from the existing Proof of Work (PoW) mining method, where cryptocurrencies are mined through computational processing, to the Proof of Stake (PoS) method, where holders receive a certain proportion of rewards. It is expected that this update will be completed by September 19 as planned, and once the mining method changes, it will not only reduce electricity consumption but also enhance efficiency and scalability. Due to this, the AUM of Ethereum-related investment products increased by 44.6% compared to the previous month, reaching $6.57 billion (approximately 8.58 trillion KRW).

Additionally, influenced by the rise in Bitcoin prices, the largest portion of investment product AUM related to Bitcoin also showed an increasing trend. It was recorded at $16.9 billion, a 16.9% increase compared to the previous month. Bitcoin’s price rose from the $18,000 range at the beginning of last month to the $23,000 range, largely influenced by the upward trend in the U.S. stock market, which shows synchronization. According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:30 AM on the day, Bitcoin’s price was $23,433 (approximately 30.55 million KRW). Although it fell 1.35% compared to the previous day, it rose more than 5% compared to a week ago.

Meanwhile, investment sentiment toward coins improved from "extreme fear" to "fear" last month. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investment sentiment as an index, was confirmed at 33 points (fear) on the day. Although it dropped 6 points from 39 points (fear) the previous day, it rose 22 points from 11 points (extreme fear) on the 1st of last month. Alternative’s Fear & Greed Index means that the closer the score is to 0, the more pessimistic fear investors feel, and the closer it is to 100, the more optimistic they are.