Total market value of the investments managed by a firm or individual.
In the context of cryptocurrency, Assets Under Management (AUM) refers to the total market value of the assets that a person, entity, or investment firm manages on behalf of investors. AUM serves as a crucial metric in evaluating the size, growth, and success of investment funds, such as crypto funds and portfolios. Here's a closer look at the key aspects of AUM:
Definition and explanation of AUM in the crypto context:AUM represents the collective value of the assets, including cryptocurrencies and other financial instruments, that are actively managed by an individual or entity. It reflects the combined worth of the investments within a fund or portfolio. In the crypto industry, AUM pertains to the market value of the digital assets under the management of a crypto fund, investment firm, or individual trader.
Significance of AUM for investors and fund managers:Understanding AUM is essential for both investors and fund managers due to its various implications:
How AUM is calculated and reported:Calculating AUM involves summing the market values of all the assets held within a fund or managed by an entity. In the crypto space, this includes the value of various cryptocurrencies, tokens, and potentially other digital assets. AUM is typically calculated at regular intervals, such as monthly or quarterly, to provide accurate and up-to-date information on the fund's value.
AUM is reported to investors and stakeholders to demonstrate transparency and accountability. Crypto funds and investment firms often disclose their AUM figures in reports, investor updates, or on their websites.
Grayscale Bitcoin Trust has billions of dollars worth of Bitcoin under management.