As the cryptocurrency market shows signs of a gradual recovery, with Bitcoin (BTC) holding above the psychologically important $20,000 level after its initial drop to $17,600 in June, this month continues to mark an all-time low for total average daily volume across all digital asset investment products.
According to the CryptoCompare report, published on Oct. 27, the average daily trading volume of institutional cryptocurrency investment products had fallen 34.1% to $61.3 million in October. Nearly all products included in the report saw a large decline in average daily volume, ranging from -24.3% to -77.5%.
The downward trend in day trading is not limited to recent market turbulence, but dates back to November 2021, with a slight exception in May 2022. Ehis October became the second month since September 2020 in which the average daily volume has fallen below $100 million.
However, the report points to some optimistic developments in other market markers. Total assets under management (AUM) across all digital asset investment products increased 1.76% to $22.9 billion compared to September. This was the first increase in AUM since July.
Assets under management in trusts, which account for 77.3% of the market, rose 2.34% to $17.7bn in October, while assets under management in exchange-traded funds (ETFs) fell 1.59% to $2.21bn.
Another important marker is net flows. this October, weekly net flows for Bitcoin-based products saw average deposits of $8.37 million, with short Bitcoin-based products seeing the largest outflows, averaging $5.03 million. The situation is much worse for Ether (ETH) products, which posted the second largest negative net inflows, at $2.87 million.
At the same time, the native Ethereum blockchain token ETH posted better gains than BTC on Oct. 26, jumping roughly 14% to hit its weekly high of $1,554. At press time, the price of ETH stands at $1,508.
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