June proved to be a brutal month for the cryptocurrency market. The price of the two largest assets – Bitcoin and Ethereum – posted a large decline as uncertainties surrounding the possible insolvency of crypto lending companies, including the crypto native fund, Three Arrows Capital, seeped in.

The latest data suggest that macro sentiment around risk assets continues to drive the narrative in the markets.

  • According to the crypto analytic company CryptoCompare, this sentiment has been reflected in the falling AUM of crypto products in June.
  • CryptoCompare’s report stated that Ethereum’s investment products’ assets under management shrunk by 46.7% during the month to $4.54 billion. Over the same period of time, Bitcoin’s AUM declined by nearly 33.6%.
  • Ethereum’s trust products also took a substantial hit. Grayscale’s Ethereum trust, for one, recorded an average daily volume of $42.9 million in June, down by 24.6%.
  • The average daily volume of Ethereum products (QETH) also halved and reached $716k.
  • Meanwhile, the AUM of all major crypto investment product types felt hard as well.
  • ETFs were not spared either, which witnessed a drop of their own, falling 52.0% to $1.31.
  • Trust products, which have a market share of more than 80.3%, declined by 35.8% to $17.3 billion in June, 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 made new record lows with Trust products recording the lowest AUM since December 2020, while ETCs AUM reached its lowest since October 2020. ETNs and ETFs followed, recording their lowest AUM since January 2021 and April 2021 respectively.”

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