Throughout the past year, inflows into cryptocurrency investment products totaled $2.2 billion, marking a 2.7-fold increase compared to 2022, according to a report by CoinShares.
“Most of the recovery occurred in the last quarter, as it became increasingly evident that the SEC was preparing for the launch of spot Bitcoin ETFs in the United States,” noted James Butterfill, head of research at the company.
The total assets under management grew by 129% over the year, reaching $51 billion, the highest level since March 2022.
Investors contributed $1.9 billion to “standard” Bitcoin funds, accounting for 87% of the total investments. CoinShares noted that the previous peak in dominance was in 2020 (80%), with the lowest recorded in 2017 (42%).
“There appears to be no noticeable trend here, and the most likely reason is the hype surrounding ETFs,” the report states.
Inflows into Ethereum-based ETPs amounted to $78 million in 2023. Investments in Solana-based instruments reached $167 million. Products based on a basket of altcoins lost $18 million.
Earlier, Bloomberg analysts noted the rise in the value of crypto fund assets following a decline in 2022. Prior to this, Sixdegree Lab specialists stated that the recent market recovery is not directly related to external inflows.
Previously, Trezor analyst Josef Tětek described the launch of a spot Bitcoin ETF as a threat to the asset itself.