Stacked Assets Under Management (AUM)

The "Stacked Assets Under Management (AUM)" is a type of chart that provides a composite picture of the total value of assets in Bitcoin and other cryptocurrencies managed by investment funds and ETFs. Let's understand the concept of "stacked" and how it applies in this context.

What "Stacked" Means

The term "stacked" is used to describe a type of chart that stacks segments on top of each other to form a whole. Imagine a stack of books, where each book represents a different category of information. In the "Stacked AUM", each "book" is a fund or ETF, and the total height of the stack represents the combined AUM of all.

How Stacked AUM Works

• Data Visualization: In a stacked chart, each segment (or fund/ETF) contributes to the total AUM at a given date. The height of each segment is proportional to the value that the fund contributes to the total.
• Time Evolution: As you move along the time axis on the chart, you can see how the contribution of each fund to the total AUM changes, reflecting growth, stagnation, or decline.

Importance of the Stacked Chart

• Growth Evaluation: The stacked chart allows investors to identify growth trends in AUM, showing not only the increase in value in existing funds but also the entry of new funds into the market.
• Market Depth: It provides a clear view of the depth of institutional investment and how different funds and ETFs are positioned within the cryptocurrency ecosystem.

Utility for Investors and Analysts

• Market Insights: Observing a stacked chart helps to understand where institutional investors are placing their money and how this is changing over time.
• Long-Term Confidence: A continuous upward trend in stacked AUM is often interpreted as a sign of long-term investor confidence in the cryptocurrency market.

Conclusion

The "Stacked Assets Under Management (AUM)" is a powerful analytical tool that condenses complex information about institutional investment in cryptocurrencies into a visually intuitive form. By displaying how funds and ETFs contribute and change their stake in the overall crypto asset market, this stacked chart is indispensable for anyone looking to understand the current and future dynamics of cryptocurrency investment.