Crypto investment products saw inflows at over $2.2 billion in 2023: CoinShares
Quick Take Digital asset investment products recorded $2.2 billion of inflows last year, according to CoinShares. The inflows were 2.7 times greater than those seen in 2022 — the third-largest year on record.
Crypto fund inflows at asset managers such as CoinShares, Grayscale, ProShares and 21Shares reached $2.2 billion last year, dominated by bitcoin investment products, according to CoinShares’ 2023 report .
The yearly total marks a significant turnaround compared to 2022 — with 2.7 times the amount of inflows in 2023 marking the third-largest year based on data going back to 2017, CoinShares Head of Research James Butterfill said. However, the flows were still substantially lower than the $10.7 billion witnessed in 2021 and $6.6 billion in 2020.
“Much of the recovery was in the final quarter where it became increasingly clear that the SEC was warming up to the launch of bitcoin spot-based ETFs in the United States,” Butterfill wrote.
Bitcoin funds were indeed the main benefactor, capturing $1.9 billion of the yearly inflows. This represents some 87% of the total — the largest percentage to date. The prior peak was 80% in 2020, with the lowest being 42% in 2017.
“There does not seem to be a discernible trend here, with the most likely cause being hype around an SEC ETF approval,” Butterfill added.
Weekly crypto asset flows. Image: CoinShares .
Ether products lag while Solana funds benefit
Total assets under management at the funds grew by 129% over the year to reach $51 billion — the highest level since March 2022. Blockchain equities also performed well, with inflows of $458 million — 3.6 times higher than in 2022 — seeing AUM rise by 109% in 2023.
Ether investment products saw a recovery of inflows toward the end of 2023, reaching $78 million. However, this represents just 0.7% of their total AUM. In contrast, Solana benefitted from investor reluctance on Ether-based funds, according to Butterfill, registering inflows of $167 million in 2023 — some 20% of their total AUM.
Regionally, the U.S. witnessed the largest inflows in dollar terms, bringing in $792 million. Germany followed with $663 million worth of inflows, and Canada third, registering $543 million. However, looking at the flows as a percentage of AUM in each country paints a different picture. By this metric, U.S. inflows only grew by 2% of AUM, compared to 22% of AUM for Germany and 15% for Canada.
“The U.S. lagging is perhaps understandable given the likely preference amongst investors for a spot-based ETF,” Butterfill said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nomura research reveals the fading of "AI growth panic"! Profit realization and capital inflow resonate, with the AI computing power theme leading technology stocks' rebound
The trading theme centered around AI is emerging from the previous wave of concerns over surging AI financing costs, overcrowded positions, and the accelerated deleveraging by hedge funds, all of which amplified fears about AI computing power and technology growth.
Samsung Electronics Q3 Revenue and Operating Profit Hit Record Highs, but Net Profit Still Below Expectations
Samsung Electronics reported a net profit of 75.21 trillion KRW for the third quarter, compared to an estimated 89.06 trillion KRW. The operating profit for the third quarter was 107.44 trillion KRW. Third-quarter sales reached 195.25 trillion KRW. Chip sales for the third quarter amounted to 147.1 trillion KRW. Samsung plans to announce its shareholder return plan at the end of January, with plans to distribute a 30 trillion KRW cash dividend for the third quarter.
$17 Billion Acquisition Countdown: DoorDash (DASH.US) Plans to Acquire Instacart to Enter the Home Shopping Battlefield, Official Announcement as Early as Thursday
DoorDash's core intention in acquiring Instacart is to extend the user access and delivery network established through food delivery to the larger-scale household supermarket shopping scenario. The deal originated from Instacart exploring a sale and contacting potential buyers such as Uber and DoorDash. By October 26, multiple media outlets reported both parties had entered deep negotiations, with the potential transaction valued at approximately $17 billion.
Crypto prices
More
