Cryptocurrency investment products saw inflows totaling $243 million in the final week of 2023, bringing the total flows of the year to $2.2 billion, according to CoinShares. These flows are calculated based on the tokens sold and bought in 2023.
Bitcoin (BTC) funds saw the most significant inflows for any cryptocurrency, with over $1.9 billion, representing 86% of the total. Solana (SOL) was a distant second, posting $167 million in inflows. Multi-Asset and Binance (BNB) exchange-traded products (ETP) bucked the overall trend, posting net outflows of $18 million and $1 million, respectively.
When viewed year-to-year, cryptocurrency investment products in 2023 saw more inflows than in 2022. Bitcoin funds saw the most significant inflows for any cryptocurrency in 2022, with $388 million, representing 47.5% of the $816 million total. Multi-Asset followed with $272 million, leaving Binance with an outflow of $24 million.
The final week of 2023 saw US$243m of inflows into digital asset ETPs, bringing 2023 total flows to US$2.2bn. pic.twitter.com/EtdHQWlu2K
— James Butterfill (@jbutterfill) January 3, 2024
The current bull market for crypto fund products appears to have begun in the week of Sept. 29. Before that, crypto funds had seen outflows for eight of the previous nine weeks.
ETPs are investment funds whose notes or shares are designed to track the price of a particular asset. Crypto ETPs usually follow the price of significant market-cap cryptocurrencies such as Bitcoin or Ether (ETH).
Some investors prefer to get exposure to crypto prices through funds rather than holding these assets themselves, as investors can store shares of these funds in a traditional brokerage account.
Related: Crypto investment products saw $103M in weekly inflows, reversing previous week: CoinShares
The price of Bitcoin broke through $45,000 on Jan. 2, for the first time in nearly two years, as the market prepares for a widely expected approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
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