Massive $2.2B Investment Surge in Crypto ETPs in 2023: A First Mover Review

• Summary of Crypto Market Developments and Trends
• Essential Updates on Ether and Celsius
• Celestia's TIA Token Performance
• Chart of the Day

Summary of Crypto Market Developments and Trends

In 2023, digital asset investment exchange-traded products (ETPs) experienced an influx of over $2 billion, marking it as the third-largest year for net inflows since 2017, based on CoinShares' data. The inflow, amounting to $2.2 billion, doubled the amount recorded in 2022. A significant sum of this financial injection occurred in the last quarter and was spurred by the Security and Exchange Commission's lean towards launching Bitcoin$42,260 -0.64% spot-based ETFs in the United States. The last week of 2023 alone witnessed net inflows into digital asset ETPs amounting to $243 million.

Essential Updates on Ether and Celsius

As cryptocurrency lender Celsius undergoes bankruptcy restructuring, Ether (ETH) prices may increase over the coming weeks. The restructuring includes a transition towards becoming a Bitcoin miner and the cessation of staking in its business operations. With the firm selling off staking rewards on the open market to offset the cost of restructuring, it will also unstake its existing ETH holdings. The sale of these holdings, which have until recently provided an essential source of income through staking rewards, will help cover additional expenses associated with the restructuring process.

Celestia's TIA Token Performance

Celestia's TIA token recorded an increase of over 22% within the past 24 hours, demonstrating an upward trend against the generally quiet broader market. The surge in the value of TIA comes as investor interest in staking the token increases, parallel to the rising enthusiasm for the blockchain's underlying technology. The token was traded at nearly $17 in the Asian morning hours on Friday before experiencing some loss. CoinGecko data shows that a recorded trading volume of almost $800 million in the past 24 hours is the TIA token's highest to date. Current staking yields on native platforms for TIA vary between 15% and 17% annually, excluding fees. This high yield, compared to the 4% risk-free rate offered by the US 10-year Treasury note, is attracting demand for the cryptocurrency.

Chart of the Day

In the chart, Bitcoin's 1% market depth, indicating buy and sell orders within 1% of the mid-price, is shown. The mid-price is the average of bid and ask prices. It uses market depth to assess how easily large quantities of Bitcoin can be traded at stable prices. Despite Bitcoin's 60% rally in the last three months of 2023, the 1% market depth has not recovered from the dip caused by Alameda's downfall in late 2022. However, the situation may improve with the expected launch of spot ETFs, according to some analysts.

Edited by Jonathan Stoker