Crypto News- In the final week of 2023, cryptocurrency investment products witnessed a notable surge with a total inflow of $243 million, marking a yearly accumulation of $2.2 billion, as reported by CoinShares. These insights are based on the trading activity of various tokens throughout the year.
Bitcoin (BTC) funds took center stage, commanding a significant share with over $1.9 billion, representing a substantial 86% of the total inflows. Solana (SOL) secured the second spot, attracting $167 million in inflows. However, Multi-Asset and Binance (BNB) exchange-traded products (ETPs) deviated from the trend, experiencing net outflows of $18 million and $1 million, respectively.
CoinShares Reports 2.2 Billion Dollars Inflows into Crypto Investment Products in 2023
When comparing year-over-year data, cryptocurrency investment products in 2023 surpassed the inflows seen in 2022. Bitcoin funds led the way in 2022, amassing $388 million, accounting for 47.5% of the total $816 million. Multi-Asset followed closely with $272 million, while Binance faced an outflow of $24 million. The bullish trend in crypto fund products appears to have initiated around the week of September 29, reversing the previous pattern of outflows observed in eight of the preceding nine weeks.
Exchange-traded products (ETPs) serve as investment funds designed to track specific asset prices. Crypto ETPs typically mirror the values of major market-cap cryptocurrencies like Bitcoin or Ether (ETH).
Investors, seeking exposure to crypto prices without direct asset ownership, often favor these funds, allowing them to hold shares in a traditional brokerage account. On January 2, the price of Bitcoin surged beyond $45,000 for the first time in nearly two years, aligning with market expectations for the widely anticipated approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
Leave a comment