Why is AUM an important metric for investors in the crypto industry?

3 answers

• Nov 27, 2021 · 3 years ago
  AUM is a crucial metric for investors in the crypto industry as it provides insights into the size and growth of a fund or investment firm. By tracking AUM, investors can gauge the popularity and success of a particular fund, which can influence their investment decisions. Additionally, AUM can indicate the level of trust and confidence other investors have in the fund, making it an important factor to consider when evaluating investment opportunities in the crypto market.
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• Nov 27, 2021 · 3 years ago
  AUM matters because it reflects the amount of money being managed by a fund or investment firm. In the crypto industry, where volatility and uncertainty are common, AUM can serve as an indicator of stability and credibility. Investors often prefer funds with higher AUM as it suggests that more people trust the fund with their money. This can provide a sense of security and reduce the perceived risk associated with investing in cryptocurrencies.
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• Nov 27, 2021 · 3 years ago
  AUM is particularly important for investors in the crypto industry because it helps them assess the potential liquidity of a fund. Higher AUM generally indicates a larger pool of assets that can be quickly converted into cash if needed. In a volatile market like cryptocurrencies, where prices can fluctuate rapidly, having access to liquid assets is crucial for investors who may need to exit their positions quickly. Therefore, AUM can be seen as a measure of the fund's ability to meet redemption requests and provide liquidity to investors.
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