Digital
asset investment products saw $2.25 billion of inflows in 2023, marking it as
the 3rd largest year for inflows since 2017, according to the newest report by
CoinShares. The inflows represented a dramatic turnaround from 2022 when they
totaled just $831 million.
Their
visible acceleration since the year’s second half shows the industry’s eager
anticipation for introducing the first-ever Wall Street BTC spot ETF.
Assets
under management (AuM) ended 2023 at $51 billion, the highest level since March
2022. Bitcoin was the prime beneficiary of the resurgence in interest,
attracting $1.9 billion inflows, or 87% of the total. This dominance of
flows was the largest on record.
Much of the
rebound came in the fourth quarter, as it became clear the US Securities and
Exchange Commission (SEC) was warming up to approving Bitcoin spot ETFs. The
market is currently eagerly awaiting the approval of the first application,
which has driven the price of BTC this week to its highest levels since April
2022.
The final week of 2023 saw US$243m of inflows into digital asset ETPs, bringing 2023 total flows to US$2.2bn. pic.twitter.com/EtdHQWlu2K
— James Butterfill (@jbutterfill) January 3, 2024
For
Bitcoin, this is a significant period as it just celebrated its 15th
anniversary of mining the first-ever BTC block, known as the “Genesis block.”
The latest report from the Bitget exchange for 2023 confirms the growth in Bitcoin market activity, which mentions an increase of 12 million in users and
a jump of 94% in spot volumes.
While
Bitcoin roared back, Ethereum (ETH) lagged despite a recovery of inflows to $78
million. Its share of total AuM remained muted at 0.7%. Solana was a bright
spot amongst altcoins, benefitting from Ethereum’s woes to notch $167 million in
inflows.
Germany, Canada and
Switzerland on Crypto Lead
By region,
Germany saw the largest inflows as a percentage of AuM at 22%, followed by
Canada and Switzerland at 15% and 13%, respectively. The US saw the most
nominal inflows at $792 million, but its share of AuM was only 2%.
Equity
investment into blockchain companies additionally rebounded in 2023, with assets
doubling from 2022 levels.
CoinShares
publishes its reports on flows into cryptocurrency funds every month. The
latest report summarized the entire year of 2023 and signaled renewed investor
enthusiasm for the crypto asset class, driven overwhelmingly by Bitcoin. With
the prospect of a spot Bitcoin ETF in 2024, another year of strong inflows may
be ahead.
According
to the latest information, Goldman Sachs also wants a piece of the Bitcoin ETF
pie, reportedly considering a partnership with BlackRock and Grayscale, who
have applied to introduce such an instrument.
Digital
asset investment products saw $2.25 billion of inflows in 2023, marking it as
the 3rd largest year for inflows since 2017, according to the newest report by
CoinShares. The inflows represented a dramatic turnaround from 2022 when they
totaled just $831 million.
Their
visible acceleration since the year’s second half shows the industry’s eager
anticipation for introducing the first-ever Wall Street BTC spot ETF.
Assets
under management (AuM) ended 2023 at $51 billion, the highest level since March
2022. Bitcoin was the prime beneficiary of the resurgence in interest,
attracting $1.9 billion inflows, or 87% of the total. This dominance of
flows was the largest on record.
Much of the
rebound came in the fourth quarter, as it became clear the US Securities and
Exchange Commission (SEC) was warming up to approving Bitcoin spot ETFs. The
market is currently eagerly awaiting the approval of the first application,
which has driven the price of BTC this week to its highest levels since April
2022.
The final week of 2023 saw US$243m of inflows into digital asset ETPs, bringing 2023 total flows to US$2.2bn. pic.twitter.com/EtdHQWlu2K
— James Butterfill (@jbutterfill) January 3, 2024
For
Bitcoin, this is a significant period as it just celebrated its 15th
anniversary of mining the first-ever BTC block, known as the “Genesis block.”
The latest report from the Bitget exchange for 2023 confirms the growth in Bitcoin market activity, which mentions an increase of 12 million in users and
a jump of 94% in spot volumes.
While
Bitcoin roared back, Ethereum (ETH) lagged despite a recovery of inflows to $78
million. Its share of total AuM remained muted at 0.7%. Solana was a bright
spot amongst altcoins, benefitting from Ethereum’s woes to notch $167 million in
inflows.
Germany, Canada and
Switzerland on Crypto Lead
By region,
Germany saw the largest inflows as a percentage of AuM at 22%, followed by
Canada and Switzerland at 15% and 13%, respectively. The US saw the most
nominal inflows at $792 million, but its share of AuM was only 2%.
Equity
investment into blockchain companies additionally rebounded in 2023, with assets
doubling from 2022 levels.
CoinShares
publishes its reports on flows into cryptocurrency funds every month. The
latest report summarized the entire year of 2023 and signaled renewed investor
enthusiasm for the crypto asset class, driven overwhelmingly by Bitcoin. With
the prospect of a spot Bitcoin ETF in 2024, another year of strong inflows may
be ahead.
According
to the latest information, Goldman Sachs also wants a piece of the Bitcoin ETF
pie, reportedly considering a partnership with BlackRock and Grayscale, who
have applied to introduce such an instrument.
