Record Crypto Inflows in 2023
The crypto market saw a significant increase in investment in 2023, with a total of $2.25 billion flowing into crypto investment products throughout the year. This marks the third-largest year for inflows since 2017, showing a major turnaround for the asset class. The surge in inflows was particularly evident in the final quarter, coinciding with indications that the SEC was becoming more open to Bitcoin ETFs.
Bitcoin Dominates Inflows
Bitcoin was the primary beneficiary of this increased investor sentiment, attracting $1.9 billion in inflows, which accounted for 87% of the total flows. This dominance is the highest in history. Ethereum also saw a recovery in inflows, while Solana benefited from investor hesitation on Ethereum.
Geographical Distribution of Inflows
The United States recorded the largest inflows at $792 million, but this only represented 2% of the total assets under management (AuM). Germany led in inflows relative to AuM, followed by Canada and Switzerland. The US lagging behind could be due to investor preferences for a spot-based ETF.
Resurgence of Interest and Investment
The positive momentum extended to blockchain equities, with assets under management rising by 109% and total inflows reaching $458 million. This indicates a resurgence of interest and investment in digital assets, driven by regulatory developments and growing investor confidence.
Institutional Money Coming In 2024?
With the expected approval of Bitcoin ETFs next year and potential interest rate cuts by the Fed, institutional money is likely to flow into Bitcoin and the broader cryptocurrency market in 2024.
Hot Take: Crypto Investment Products See Significant Growth in 2023
A recent report reveals that crypto investment products experienced a substantial increase in inflows in 2023, making it the third-largest year for inflows since 2017. Bitcoin emerged as the top choice for investors, receiving the majority of inflows. The United States recorded the largest inflows, but Germany led in inflows relative to assets under management. This surge in investment indicates a resurgence of interest and confidence in digital assets. Looking ahead to 2024, the approval of Bitcoin ETFs and potential interest rate cuts could attract even more institutional money into the crypto market.
By
By
By
By
