Cryptocurrency Investment Inflows
In the past year, cryptocurrency investment products have seen inflows of approximately $2.2 billion. The majority of these funds came from institutional investors, with Bitcoin-focused products making up the largest share, at $1.93 billion.
Altcoin Inflows
When it comes to altcoins, the leading altcoin investors bet on was the smart contract platform Solana ($SOL), with inflows of $167 million. This amount surged by more than 650% as it recovered from the collapse of FTX. Solana garnered more inflows than investment products focused on Ethereum ($ETH), the second-largest digital asset.
Other Popular ETPs
According to CoinShares’ Digital Asset Fund Flows report, exchange-traded products (ETPs) focusing on XRP were also popular, with over $18 million in inflows, while products focusing on Cardano saw $14 million in inflows.
Total Assets Under Management
Notably, ETPs focused on multiple digital assets saw a total of $18 million in outflows, while products focused on Binance’s BNB saw $1 million in outflows over the year. Total assets under management rose 129% over the year to $51 billion, the highest level since March 2022.
Regional Inflows
The United States saw inflows of $792 million, representing only 2% of assets under management. Germany saw the largest inflows at 22% of assets under management, followed by Canada and Switzerland at 15% and 13%, respectively.
Blockchain Equities
Assets under management for blockchain equities rose by 109 percent and saw total inflows of $458 million, 3.6 times the inflows seen in 2022.
Hot Take
The cryptocurrency investment market is largely driven by institutional investors, with Bitcoin taking the lead. Solana, XRP, and Cardano were among the top altcoins investors bet on. Regional inflows showed differences in preferences among investors, with the United States lagging behind. With assets under management and inflows rising significantly, the cryptocurrency market remains an attractive investment option.
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