- 2023 sees $2.25 billion in digital asset inflows.
- Inflows increased 2.7x from 2022.
- Bitcoin garners $1.9 billion, 87% of total inflows.
While markets anticipate the Securities and Exchange (SEC) decision on Spot Bitcoin exchange-traded funds (ETFs), similar products have been gaining ground. ETFs in the US and spot funds in other countries have seen significant growth in 2023.
Sponsored
The industry saw a record influx of investments, totaling $2.25 billion for the year. This surge in inflows was led predominantly by Bitcoin.
Bitcoin ETFs Lead Among $2.25 Billion Inflows
According to a report by CoinShares published on Wednesday, January 3, last year saw a remarkable surge in investment in crypto exchange-traded funds (ETFs). Crypto-related ETFs saw a record influx of investments, totaling $2.25 billion for the year. Notably, inflows were 2.7x that seen in 2022.
Bitcoin, in particular, emerged as the primary benefactor with inflows of $1.9 billion. This represents 87% of the total inflows, showcasing its dominant position in the market. Bitcoin’s current inflow percentage is the highest in its history, surpassing its peak of 80% in 2020.
Ethereum, Solana Trail Bitcoin ETFs
While Bitcoin led the charge, other digital assets like Ethereum and Solana also saw notable inflows, signaling a diversifying interest among investors. For one, Ethereum showed signs of recovery by the end of 2023, with inflows totaling $78 million. Moreover, Solana benefited from diversification and saw inflows totaling $167 million.
Most ETF inflows, specifically $792 million, were from the United States. However, this figure only amounted to 2% of the country’s total Assets under Management (AuM).
Sponsored
On the other hand, Germany emerged as a standout, with digital asset inflows reaching 22% of its total AuM. Canada and Switzerland also recorded significant inflows, with 15% and 13% of their AuM, respectively.
On the Flipside
- While not yet approved in the US, spot Bitcoin ETFs are available in several other jurisdictions.
- US investors have access to other types of Bitcoin ETFs.
Why This Matters
Growing inflows in Bitcoin ETF suggest investor interest in these products. This indicates a potential for higher investments after the SEC’s potential approval of a Spot Bitcoin ETF.
Read more about the spot Bitcoin ETF approval:
Bitcoin ETF Approval Unlikely This Week, Expert Predicts
Read more about Binance Labs’ investment in Memecoin (MEME):
9GAG Memeland Token Surges After Binance Labs Investment
