CoinShares expects $2.2 billion in crypto investment in 2023
[ad_1]
Cryptocurrency investments surged by $243 million in the last week of 2023, taking the annual total to $2.2 billion, driven by Bitcoin’s massive 86% share and market optimism.
James Butterfill, head of research at CoinShares, reported that Bitcoin (BTC) dominated the surge, accounting for 86% with over $1.9 billion in inflows, followed by Solana (SOL) with $167 million in inflows. However, multi-asset and BNB exchange-traded products (ETPs) bucked the trend, seeing net outflows of $18 million and $1 million respectively.
Inflows increased in 2023 compared to the previous year’s data. In 2022, Bitcoin funds attracted $388 million, accounting for 47.5% of the total $816 million, followed by multi-asset, which attracted $272 million, while Binance faced an outflow of $24 million.
The bullish trend in crypto fund products began around September 29, ending a period in which outflows dominated eight of the past nine weeks. ETPs act as investment funds designed to track the price of a specific asset, with crypto ETPs typically reflecting major cryptocurrencies such as Bitcoin or Ethereum.
Investors who choose to gain exposure to cryptocurrency prices through funds rather than direct asset ownership can conveniently store their shares in a traditional brokerage account. On January 2, Bitcoin prices soared above $45,000, reaching a two-year high.
