growing interest in digital assets despite the ongoing regulatory crackdown by the SEC.” The report also noted that the increase in AUM was driven by the continued dominance of bitcoin and ethereum in the digital asset market.
SEC Enforcement Actions
The rise in AUM comes at a time when the SEC has been stepping up its enforcement actions against crypto industry players. In recent months, the SEC has taken action against several crypto companies for allegedly violating securities laws. These actions have included fines, cease and desist orders, and even the suspension of trading in certain digital assets.
Despite the regulatory crackdown, the crypto industry has continued to grow, with more investors and institutions entering the market. The rise in AUM is a clear indication of this trend, as more investors seek exposure to digital assets.
Bitcoin and Ethereum Dominate
Bitcoin and ethereum continue to account for the majority of digital assets under management. According to the Cryptocompare report, bitcoin accounted for 70% of AUM in February, while ethereum accounted for 13%. Other digital assets, including stablecoins, accounted for the remaining 17%.
The dominance of bitcoin and ethereum is not surprising, given their status as the two largest digital assets by market capitalization. However, the report noted that other digital assets, such as decentralized finance (DeFi) tokens, are also gaining traction among investors.
Overall, the rise in AUM is a positive sign for the crypto industry, as it indicates growing interest and adoption of digital assets. However, the regulatory environment remains uncertain, and investors should be aware of the risks involved in investing in this emerging asset class.
