Inflow of Cryptocurrency Investments Surges in Final Week of 2023
In the final week of 2023, cryptocurrency investments experienced a significant surge, with a total inflow of $243 million. This brought the yearly total to $2.2 billion, driven primarily by Bitcoin’s dominance and overall market optimism.
Bitcoin Leads the Surge with 86% Share
According to James Butterfill, Head of Research at CoinShares, Bitcoin (BTC) played a major role in this surge, representing 86% of the inflows with over $1.9 billion. Solana (SOL) followed with $167 million. However, multi-asset and BNB exchange-traded products (ETP) defied the trend, experiencing net outflows.
Comparing Inflows to Previous Year
When comparing the data to the previous year, 2023 showed a significant increase in inflows. In 2022, Bitcoin funds attracted $388 million, accounting for 47.5% of the total inflows. Multi-asset funds came in second with $272 million, while Binance faced an outflow of $24 million.
The Bullish Trend for Crypto Fund Products
The bullish trend for crypto fund products began around September 29th after a period dominated by outflows in eight of the previous nine weeks. Exchange-traded products (ETPs) serve as investment funds that track the price of specific assets, including cryptocurrencies like Bitcoin or Ether.
Convenient Exposure to Crypto Prices
Investors who prefer exposure to crypto prices through funds rather than direct ownership can easily store shares in a traditional brokerage account. On January 2nd, the price of Bitcoin reached a two-year high, surpassing $45,000.
Hot Take: Crypto Investments Soar in 2023
In 2023, cryptocurrency investments experienced a surge, with an inflow of $243 million in the final week. Bitcoin played a significant role, representing 86% of the total inflows. This bullish trend for crypto fund products marks a shift towards convenient exposure to crypto prices through funds rather than direct asset ownership. With Bitcoin reaching a two-year high, it seems that the crypto market is poised for further growth in the coming year.
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