2023 Sees Record $2.2B Inflows in Cryptocurrency Investment Products; Bitcoin Tops the List
Summary:
In the final week of 2023, cryptocurrency investment products saw inflows of $243 million, marking a total annual inflow of $2.2 billion. Bitcoin drew the highest inflows of $1.9 billion. In comparison to 2022, inflows into cryptocurrency investment products were higher in 2023. The upswing in crypto fund investments kicked off in the week of September 29 after a period of net outflows. Furthermore, Bitcoin's price surpassed the $45,000 threshold in early January for the first time in nearly two years, anticipating acceptance of a US spot Bitcoin ETF.
The last week of 2023 witnessed a total investment of $243 million in cryptocurrency products, leading to an annual inflow of $2.2 billion, as reported by CoinShares. This value is a sum of all tokens bought and sold during the year. Bitcoin (BTC) recorded the highest inflow among all cryptocurrencies, amassing over $1.9 billion, accounting for 86% of the total amount. Solana (SOL) followed, albeit remotely, with inflows of $167 million. Conversely, 'Multi-Asset' and Binance (BNB) exchange-traded products (ETP) experienced net outflows of $18 million and $1 million, respectively. Comparing this to the previous year, the 2023 inflows for cryptocurrency investment products significantly outperformed 2022 inflows. The latter year saw Bitcoin funds as the top beneficiaries, with a contribution of $388 million, equating to 47.5% of the total inflow of $816 million. 'Multi-Asset' trailed with $272 million, whereas Binance netted an outflow of $24 million.
The final week of 2023 saw an investment of $243 million in digital asset ETPs, summing the year's total inflow to $2.2 billion.
Investment in cryptocurrency funds turned a corner in the week starting Sept. 29, following a trend of outflows for eight out of the nine preceding weeks. Notably, ETPs are investment vehicles tracking the price trajectory of specific assets. Most cryptocurrency ETPs monitor the price of large-market-cap digital currencies like Bitcoin and Ether (ETH). Such funds are favored over holding the assets directly as investors can keep these fund shares in a conventional brokerage account.
To note, Bitcoin's price crossed the $45,000 mark for the first time in approximately two years on January 2. The crypto market awaits the likely sanction of a spot Bitcoin exchange-traded fund (ETF) in the United States.
Published At
1/3/2024 6:06:02 PM
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