Crypto Investment Products Witness $2,250,000,000 Worth of Inflows in 2023, up 2.7x Year-on-Year: CoinShares

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Digital assets manager CoinShares says crypto investment products saw a significant recovery in 2023 as inflows increased by nearly threefold from the preceding year.

In its latest Digital Asset Fund Flows report, Coinshares says

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inflows reached $2.25 billion in 2023, representing a 2.7 times year-on-year increase.

Total assets under management (AuM) also rose by 129%, hitting $51 billion by December 31st, the highest since March 2022.

The turnaround brings 2023 as the third largest year for crypto asset inflows since 2017, surpassed only by 2020 with $6.6 billion and  2021 with $10.7 billion.

“The US saw the largest inflows of $792 million, but this only represented 2% of AuM (assets under management), while Germany saw the largest inflows at 22% of AuM followed by Canada and Switzerland at 15% and 13% respectively.”

CoinShares says the reason the US is lagging in AuM is possibly because investors have a likely preference for a spot-based exchange-traded fund (ETF).

The report says much of the recovery happened in the last quarter amid optimism that the U.S. Securities and Exchange Commission (SEC) will finally greenlight the first Bitcoin (BTC) spot-based ETF.

Bitcoin also saw $1.9 billion worth of inflows, or 87% of the total flows, making the flagship crypto asset the greatest benefactor of improved investor sentiment.

“Its dominance in flows is the largest in history with the prior peak being 2020 where it received 80% of the flows and the lowest being 2017 at just 42%. There does not seem to be a discernible trend here, with the most likely cause being hype around and SEC ETF approval.”

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The post Crypto Investment Products Witness $2,250,000,000 Worth of Inflows in 2023, up 2.7x Year-on-Year: CoinShares appeared first on BitcoinLinux.

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