“Digital Asset ETP Net Inflows Reach $2.2 Billion in 2023, Marking the Third Highest Annual Inflow since 2017”

"Digital Asset ETP Net Inflows Reach $2.2 Billion in 2023, Marking the Third Highest Annual Inflow since 2017"

"Digital Asset ETP Net Inflows Reach $2.2 Billion in 2023, Marking the Third Highest Annual Inflow since 2017"

Crypto asset management company CoinShares released a report on Wednesday, stating that digital asset ETPs saw a net inflow of $243 million in the last week of 2023, bringing the total inflow for the year to $2.2 billion, which is 2.7 times the net inflow of the previous year, marking a “dramatic shift in the asset class.”

According to data since 2017, 2023 was the third highest year for inflows into digital asset investment products, only lower than $6.6 billion in 2020 and $10.7 billion in 2021. CoinShares’ report stated:

Bitcoin benefited the most from improved investor sentiment, with net inflows into related investment products reaching $1.9 billion in 2023, accounting for 87% of the total, which is the highest dominance in history, surpassing the previous peak of 80% in 2020. The net inflow into Solana investment products was $167 million, surpassing Ethereum and short Bitcoin investment products, which had net inflows of $78 million and $60 million, respectively.

Source:
CoinShares

The United States had the highest net inflow of $792 million, but it only accounted for 2% of its AuM. In comparison, Germany had the highest proportion of inflows to its AuM at 22%, which is the highest among all countries. Canada and Switzerland followed closely, accounting for 15% and 13% of their respective AuM. CoinShares stated that considering investors’ preference for spot-based ETFs, the US lagging behind in this aspect may be understandable.

Source:
CoinShares

Net inflows into blockchain stocks also grew significantly last year, with AuM increasing by 109% and total inflows reaching $458 million, which is 3.6 times the inflow in 2022.