2023 Crypto Investment Products Draw $2.2B Inflows: CoinShares Report

• Digital Asset Investment ETPs Witnessed $2 Billion Inflow in 2023
• Q4 2023: A Significant Period for Digital Asset ETPs
• The Launch of Bitcoin Spot-Based ETFs in the US
• Bitcoin Dominates the Digital Asset ETPs Inflow
• Other Notable Cryptocurrencies in 2023
• Solana and Ethereum's Performance

Digital Asset Investment ETPs Witnessed $2 Billion Inflow in 2023

In 2023, digital asset investment exchange-traded products (ETPs) experienced a massive surge in investor interest, receiving over $2 billion in net inflows. This massive influx of investment ranks it as the third largest year since 2017, based on the data obtained from CoinShares.

Q4 2023: A Significant Period for Digital Asset ETPs

The Launch of Bitcoin Spot-Based ETFs in the US

Net inflows in 2023 summed up to $2.2 billion, which was more than twice the amount recorded in 2022. The last quarter of the year saw the majority of these inflows. This surge was largely due to the anticipation that the SEC was becoming more receptive towards the introduction of bitcoin spot-based ETFs in the United States.

The last week of the year alone accounted for $243 million of net inflows into digital asset ETPs.

Bitcoin Dominates the Digital Asset ETPs Inflow

Bitcoin$42,260 -0.64% (BTC) held a significant position with $1.9 billion of inflows in 2023. This represented 87% of the total $2.2 billion inflow, making it the largest ratio ever. CoinShares noted that the previous highest ratio was 80% in 2020.

The price of bitcoin had a significant rally throughout 2023, with an approximate increase of 155%, ending the year above $42,000.

Other Notable Cryptocurrencies in 2023

Solana and Ethereum's Performance

Solana$104 5.03% (SOL) related investment products also experienced a substantial year in 2023, with net inflows amounting to $167 million. On the other hand, Ethereum$2,315 -2.42% (ETH) saw a relatively lower performance, with net inflows of just $78 million.

Edited by Jonathan Stoker