This month recorded the lowest average daily volume across all digital asset investment products, despite the crypto market showing signs of gradual recovery and Bitcoin (BTC) holding above the psychologically significant $20,000 level after its initial crash to $17,600 in June.
The average daily trading volume for institutional (investment firms, asset managers, etc.) cryptocurrency products decreased 34.1% to $61.3 million in October, as per research from Crypto Compare that was released on October 27. Between -24.3% and -77.5%, the average daily volumes for almost all the items examined in the research experienced a significant reduction.
With a small exception for May 2022, the declining trend in daily trading predates the recent market turbulence and may be traced back to November 2021. Since September 2020, this October is the second time that the average daily volumes have decreased below $100 million.
The analysis does find some encouraging trends in other market indicators. In comparison to September, the total assets under management (AUM) for all digital asset investment products increased by 1.76% to $22.9 billion. Since July, there has not been any growth in AUM. 77.3% of the market’s AUM, which represents trust products, increased by 2.34% to $17.7 billion in October, while exchange-traded funds (ETFs) saw a 1.59% decline to $2.21 billion.
Net flows are another key indicator. Weekly net flows for Bitcoin-based assets in October saw average inflows of $8.37 million, with average outflows of $5.03 million for short Bitcoin-based securities. Ether (ETH) goods, which recorded the second-largest negative net flows of $2.87 million, are in a much worse predicament. By Oct. 26, ETH had outperformed BTC, rising over 14% to hit its weekly high of $1,554.