Crypto investment products saw inflows at over $2.2 billion in 2023: CoinShares
Quick Take Digital asset investment products recorded $2.2 billion of inflows last year, according to CoinShares. The inflows were 2.7 times greater than those seen in 2022 — the third-largest year on record.
Crypto fund inflows at asset managers such as CoinShares, Grayscale, ProShares and 21Shares reached $2.2 billion last year, dominated by bitcoin investment products, according to CoinShares’ 2023 report .
The yearly total marks a significant turnaround compared to 2022 — with 2.7 times the amount of inflows in 2023 marking the third-largest year based on data going back to 2017, CoinShares Head of Research James Butterfill said. However, the flows were still substantially lower than the $10.7 billion witnessed in 2021 and $6.6 billion in 2020.
“Much of the recovery was in the final quarter where it became increasingly clear that the SEC was warming up to the launch of bitcoin spot-based ETFs in the United States,” Butterfill wrote.
Bitcoin funds were indeed the main benefactor, capturing $1.9 billion of the yearly inflows. This represents some 87% of the total — the largest percentage to date. The prior peak was 80% in 2020, with the lowest being 42% in 2017.
“There does not seem to be a discernible trend here, with the most likely cause being hype around an SEC ETF approval,” Butterfill added.
Weekly crypto asset flows. Image: CoinShares .
Ether products lag while Solana funds benefit
Total assets under management at the funds grew by 129% over the year to reach $51 billion — the highest level since March 2022. Blockchain equities also performed well, with inflows of $458 million — 3.6 times higher than in 2022 — seeing AUM rise by 109% in 2023.
Ether investment products saw a recovery of inflows toward the end of 2023, reaching $78 million. However, this represents just 0.7% of their total AUM. In contrast, Solana benefitted from investor reluctance on Ether-based funds, according to Butterfill, registering inflows of $167 million in 2023 — some 20% of their total AUM.
Regionally, the U.S. witnessed the largest inflows in dollar terms, bringing in $792 million. Germany followed with $663 million worth of inflows, and Canada third, registering $543 million. However, looking at the flows as a percentage of AUM in each country paints a different picture. By this metric, U.S. inflows only grew by 2% of AUM, compared to 22% of AUM for Germany and 15% for Canada.
“The U.S. lagging is perhaps understandable given the likely preference amongst investors for a spot-based ETF,” Butterfill said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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