March 28, 2024
Cryptocurrency Investment Surges: $2.2 Billion Flows in 2023,
Latest Cryptocurrency News

CoinShares Report: Crypto Funds See Record $243 Million Inflows

Cryptocurrency investment products, as reported by CoinShares, witnessed a final-week surge in 2023, accumulating inflows of $243 million. This brought the year’s total flows to $2.2 billion, calculated based on the tokens transacted throughout the year.

Bitcoin dominated the inflow scenario, with over $1.9 billion pouring in, constituting a staggering 86% of the overall total. Solana followed but trailed significantly with $167 million in inflows. In contrast, Multi-Asset and Binance exchange-traded products (ETP) countered the trend, experiencing net outflows of $18 million and $1 million, respectively.

Comparatively, 2023 showcased greater inflows into cryptocurrency investment products than 2022. In 2022, Bitcoin funds led the pack with $388 million, comprising 47.5% of the $816 million total. Multi-Asset trailed with $272 million, while Binance faced an outflow of $24 million. The bullish trend for crypto fund products seems to have commenced in the week of Sept. 29, following eight of the previous nine weeks of outflows.

ETPs represent investment funds designed to track specific asset prices. In the realm of cryptocurrencies, these ETPs typically mirror the market caps of significant cryptocurrencies like Bitcoin or Ether. Some investors opt for exposure to crypto prices through these funds instead of holding the assets directly, as the shares of these funds can be stored in a traditional brokerage account. Notably, on Jan. 2, the price of Bitcoin surged past $45,000 for the first time in almost two years, anticipating the anticipated approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.

Image by freepik

Related posts

Critical Review of New York’s BitLicense Oversight

Harper Hall

FCA Unveils Plans for UK’s Second Cryptocurrency Sandbox Focused on Digital Securities

Henry Clarke

Solana Approaches $100 Fueled by Ongoing Memecoin Enthusiasm

Harper Hall

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More