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Crypto Terms:  Letter A

What are Assets Under Management (AUM)?

Assets Under Management (AUM) - total market values across all funds controlled by an individual or a financial institution
2 minutes

Let's find out Assets Under Management (AUM) meaning, definition in crypto, what are Assets Under Management (AUM), and all other detailed facts.

Assets under management (AUM), or funds under management, describe the total market value of assets or investments managed by an individual, mutual fund, hedge fund, or an investment company managing wealth on behalf of their clients.

AUM is a flexible indicator. It changes based on the funds' performance and the flow of investments. Tracking AUM is common practice in the cryptocurrency and decentralized finance (DeFi) world. Cryptocurrency traders who are new to the digital market require a reliable wallet to store their assets.

They also need access to an exchange platform that supports the cryptocurrency they wish to trade. It is common to opt for exchange platforms that support a wider variety of cryptocurrencies and wallets.

To simplify this project for new traders, financial agencies offer asset management services. This way, instead of handling the complexities of account and wallet management, traders pass on the responsibility to crypto asset management platforms that can merge the holdings of their customers.

Assets under management cover all aspects of cryptocurrency funds. They can be divided into different groups based on overall volume. Having AUM of $1 million is seen as small, while AUM of over $1 billion can be considered to be a large-scale project.

Fund regulation can be a complicated and expensive investment. The overhead costs of third-party services like auditors, custodians, and fund administrators can come to as much as $10 million. Fund management regulations vary from country to country and often require a license issued by local security exchange commissions to operate.