Assets Under Management (AUM)
What is Assets Under Management?
Assets under management (AUM), often known as funds under management, represents the complete market value of investments or assets that hedge funds, mutual funds, or wealth management firms oversee on behalf of their clients. The value of AUM can change based on fund performance and the levels of investment received.
Grasping the Concept of Assets Under Management
In the worlds of cryptocurrency and DeFi, the term Assets Under Management (AUM) is gaining considerable traction. For novices entering the crypto sphere, finding a reliable wallet and exchange compatible with their chosen cryptocurrencies can be quite a challenge. Many opt for wallets and exchanges that support a broad array of coins and tokens.
Given the inherent complexities of asset management, various agencies are now creating innovative tools aimed at simplifying the process.asset management Crypto asset management platforms make life easier for users by allowing them to manage their holdings in a consolidated manner, rather than juggling between multiple accounts and platforms. wallets AUM serves as a fundamental metric for overseeing all facets of finance and cryptocurrency. For example, if a fund's AUM stands at $100,000, it indicates a smaller operation; those with less than $1 million are often seen as minor players, while those that exceed $1 billion are considered substantial enterprises. Regulated funds typically require substantial overhead of at least $10 million since they rely on third-party services such as fund managers and custodians. Licensing is also generally mandated by local authorities.
Large hedge funds, including Netflix, Google, and Meta, have recently experienced significant sell-offs. security exchange commissioners to manage a fund.
Read related articles:
« Back to Glossary IndexDisclaimer
In line with the Trust Project guidelines Damir, serving as the team leader, product manager, and editor at Metaverse Post, delves into subjects like AI/ML, Advanced General Intelligence, Large Language Models, the Metaverse, and the burgeoning landscapes of Web3. His writings reach a staggering audience of over a million readers each month. With a decade of expertise in SEO and digital marketing, Damir is frequently featured in respected outlets such as Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, and BeInCrypto. As a digital nomad, he travels among the UAE, Turkey, Russia, and the CIS. His background includes a degree in physics, contributing to his ability to navigate the rapidly evolving online world.
