Digital asset manager CoinShares says crypto investment products saw a significant recovery in 2023 as inflows nearly tripled from the previous year.
In the latest Digital Asset Fund Flows report, Coinshares say Inflows reached $2.25 billion in 2023, representing a 2.7x year-on-year increase.
Total assets under management (AuM) also rose 129% to reach $51 billion as of December 31, the highest level since March 2022.
The turnaround makes 2023 the third biggest year for crypto asset inflows since 2017, surpassed only by 2020 with $6.6 billion and 2021 with $10.7 billion.
“The US saw the largest inflows of $792 million, but this represented only 2% of assets under management (assets under management), while Germany saw the largest inflows with 22% of assets under management, followed by Canada and Switzerland with 15% respectively and 13%.”
CoinShares says the reason the US is lagging in assets under management may be because investors likely prefer a spot-based exchange-traded fund (ETF).
The report says much of the recovery occurred last quarter, amid optimism that the U.S. Securities and Exchange Commission (SEC) will finally greenlight the first Bitcoin (BTC) spot-based ETF.
Bitcoin also saw inflows worth $1.9 billion, or 87% of total inflows, making the flagship crypto asset the biggest benefactor of improved investor sentiment.
“The country’s dominance in flows is the greatest in history, with a previous peak in 2020, where it received 80% of flows, and the lowest in 2017, with only 42%. There appears to be no discernible trend here, with the most likely cause being the hype surrounding and endorsement by the SEC ETF.”
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