2023’s Crypto Boom: $2.2B Inflows Revealed

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In a year-over-year comparison, cryptocurrency investment products witnessed increased inflows in 2023, with BTC attracting over $1.9 billion, which accounts for 86% of the aggregate inflow.

CoinShares reported that cryptocurrency investment products accumulated inflows of $243 million during the concluding week of 2023, culminating in yearly inflows of $2.2 billion. These figures are derived from the tokens transacted in 2023.

Bitcoin funds recorded the highest inflows among all cryptocurrencies, amassing over $1.9 billion, making up 86% of the overall inflows. In contrast, Solana secured a distant second place with inflows of $167 million. However, Multi-Asset and Binance exchange-traded products (ETP) deviated from this pattern, registering net outflows of $18 million and $1 million, respectively.

Comparatively, in 2022, cryptocurrency investment products observed lower inflows. Bitcoin funds led the pack with inflows of $388 million, constituting 47.5% of the total inflows of $816 million. Multi-Asset trailed behind with inflows of $272 million, while Binance experienced an outflow of $24 million.

The prevailing bullish phase for crypto fund products seemingly commenced in the week starting Sept. 29. Prior to this, these funds experienced outflows in eight out of the preceding nine weeks.

ETPs function as investment vehicles with notes or shares tailored to mirror the performance of a specific asset. In the realm of crypto, ETPs typically track the value of dominant market-cap cryptocurrencies like Bitcoin or Ether. Some investors opt for this indirect exposure to cryptocurrency prices, utilizing funds rather than directly holding the assets. This approach allows investors to hold shares of such funds within conventional brokerage accounts.

On Jan. 2, the price of Bitcoin surged past $45,000 for the first time in almost two years, as anticipation grows for the anticipated approval of a Bitcoin spot exchange-traded fund (ETF) in the U.S. market.

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A beginner's guide to cryptocurrency

Intermediate

An Intermediate Guide to Blockchain and Crypto

Expert

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