Bitcoin ETFs See $1.9 Inflows in 2023, Reach 87% Dominance
- 2023 sees $2.25 billion in digital asset inflows.
- Inflows increased 2.7x from 2022.
- Bitcoin garners $1.9 billion, 87% of total inflows.
While markets anticipate the Securities and Exchange (SEC) decision on Spot Bitcoin exchange-traded funds (ETFs), similar products have been gaining ground. ETFs in the US and spot funds in other countries have seen significant growth in 2023.
The industry saw a record influx of investments, totaling $2.25 billion for the year. This surge in inflows was led predominantly by Bitcoin.
Bitcoin ETFs Lead Among $2.25 Billion Inflows
According to a report by CoinShares published on Wednesday, January 3, last year saw a remarkable surge in investment in crypto exchange-traded funds (ETFs). Crypto-related ETFs saw a record influx of investments, totaling $2.25 billion for the year. Notably, inflows were 2.7x that seen in 2022.
Source: CoinShares .Bitcoin, in particular, emerged as the primary benefactor with inflows of $1.9 billion. This represents 87% of the total inflows, showcasing its dominant position in the market. Bitcoin’s current inflow percentage is the highest in its history, surpassing its peak of 80% in 2020.
Ethereum, Solana Trail Bitcoin ETFs
While Bitcoin led the charge, other digital assets like Ethereum and Solana also saw notable inflows, signaling a diversifying interest among investors. For one, Ethereum showed signs of recovery by the end of 2023, with inflows totaling $78 million. Moreover, Solana benefited from diversification and saw inflows totaling $167 million.
Most ETF inflows, specifically $792 million, were from the United States. However, this figure only amounted to 2% of the country’s total Assets under Management (AuM).
On the other hand, Germany emerged as a standout, with digital asset inflows reaching 22% of its total AuM. Canada and Switzerland also recorded significant inflows, with 15% and 13% of their AuM, respectively.
On the Flipside
- While not yet approved in the US, spot Bitcoin ETFs are available in several other jurisdictions.
- US investors have access to other types of Bitcoin ETFs.
Why This Matters
Growing inflows in Bitcoin ETF suggest investor interest in these products. This indicates a potential for higher investments after the SEC’s potential approval of a Spot Bitcoin ETF.
Read more about the spot Bitcoin ETF approval:
Bitcoin ETF Approval Unlikely This Week, Expert Predicts
Read more about Binance Labs’ investment in Memecoin (MEME):
9GAG Memeland Token Surges After Binance Labs Investment
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Price action ahead of the inauguration is ‘rigged for unpredictability:’ K33
K33 analysts no longer think that Donald Trump’s inauguration is a sell the news event
Elon Musk slams SEC as ‘broken’ over ‘artificially’ created $150 million Twitter stock windfall
SEC claims Musk's delayed Twitter disclosure saved him $150 million and hurt retail investors.
MicroStrategy's preferred MSTR issuance seeks 'returns and volatility' at 1.5x bitcoin, Saylor says
MicroStrategy Executive Chairman Michael Saylor spoke Jan. 13 at a Benchmark-hosted investor meeting in Orlando.The company plans to raise up to $2 billion in the first quarter of 2025 by issuing perpetual preferred stock.
Cardano poised for historic growth in 2025 driven by US political scenario