In a striking development for the cryptocurrency market, 2023 saw digital asset investment products amass inflows of $2.25 billion, marking it as the third-best year since records began in 2017. This represents a significant 2.7-fold increase from the previous year. The surge was particularly pronounced in the final quarter, aligning with signs of the SEC’s growing openness to Bitcoin ETFs. Total assets under management skyrocketed by 129% to reach $51 billion, a peak since March 2022.
Bitcoin emerged as the primary beneficiary, drawing in $1.9 billion and accounting for 87% of total inflows. This level of concentration in Bitcoin investment is unprecedented. The enthusiasm is partly attributed to the anticipated approval of a spot Bitcoin ETF. Other cryptocurrencies like Ethereum, Solana, XRP, and Cardano also saw notable inflows, though their shares in the total assets under management were comparatively modest.
Geographically, the United States led in terms of inflow volume, contributing $792 million. However, this accounted for only 2% of the total assets under management. Germany stood out, with inflows constituting 22% of its total assets, followed by Canada and Switzerland .
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
