October 28, 2022 by Saeed Ul Hassan

Despite the fact that the crypto market has shown signs of revival this month, with Bitcoin and Ethereum topping $20,000 and $1,500, respectively – October 2022 had one of its lowest daily trading volumes since 2020.

The average daily trading volume for institutional digital asset products fell by 34.1% to $61.3 million this month, according to a research report released on October 27th by CryptoCompare, a global cryptocurrency market data provider. 

However, the decline in daily trading is not new to the recent market turbulence. In September 2020, the average daily trading volume dipped below $100 million for the first time – it happened again this month (October), marking it the lowest ever.

The report asserts a considerable decrease in average daily volumes for virtually all of the products examined in this analysis, ranging from -24.3% to -77.5%. 

While on the other hand, Purpose’s ETF products experienced a surge in trading volume, with the company’s BTCC and ETHH products seeing increases of 298% and 172%, respectively.

Moreover, when taking into account “Average weekly net flows,” per the report, it surged in October from the 25th when cryptocurrencies rose again after two consecutive months of decline due to expectations for a less aggressive stance from the Federal Reserve.  

In September, average weekly outflows were $9.20 million, while weekly inflows were $730k on average, according to the report.

The AUM Of Crypto-Based Products

The overall Assets Under Management (AUM) for all digital asset investment products increased in October by 1.76% to $22.9 billion as of the 25th. AUM had risen for the first time since July of this year, although it is still considerably lower than it was in March when the market peaked.

In addition, AUM for Bitcoin-based crypto assets rose 2.55% to $16 billion, taking up 69.6% of the market share. In comparison, AUM for Ethereum-based crypto assets rose 3.35% to $5.7 billion, representing 24.8% of total AUM.

Moreover, AUM for trust-related products, which make up 77.3% of the market, increased 2.34% to $17.7 billion this month, whereas AUM for ETFs decreased 1.59% to $2.21 billion. 

The report also claimed that:

Weekly net flows for Bitcoin-based products recorded inflows averaging $8.37mn in October. Ethereum products, on the other hand, recorded the second-largest negative net flows of $2.87mn. Short Bitcoin-based products record the largest outflows, averaging $5.03mn.

Nevertheless, today’s price analysis for BTC and ETH reveals that both currencies are now trading in the red but are still holding their October 25th millstone, per the CoinMarketcap data.

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