Cryptocurrency Investment Products in 2023
CoinShares reported that cryptocurrency investment products saw inflows of $243 million during the last week of 2023, bringing the annual total to $2.2 billion. Bitcoin (BTC) funds saw the highest inflows of any cryptocurrency with over $1.9 billion, making up 86% of the total. Solana’s SOL (SOL) was the next highest with $167 million, while multi-asset and BNB (BNB) exchange-traded products (ETP) had net outflows of $18 million and $1 million respectively.
When compared to 2022, cryptocurrency investment products saw more inflows in 2023. Bitcoin funds saw the highest inflows in 2022 at $388 million, making up 47.5% of the $816 million total. Multi-asset followed with $272 million, while Binance had an outflow of $24 million.
The current web 3.0 market bull run for crypto fund products appears to have started in the week of Sept. 29. Before that, crypto funds had seen outflows for eight of the previous nine weeks.
The Growing Popularity of Web 3.0
Investors are increasingly turning to Exchange Traded Products (ETPs) to gain exposure to the prices of leading cryptocurrencies like Bitcoin and Ether (ETH). These funds can be stored in a traditional brokerage account, making them an attractive option for those who prefer not to hold the underlying digital assets.
The Web 3.0 market has been expanding rapidly, with the market size and list of tokens growing significantly. This has been accompanied by an increase in investment in Web 3.0 tokens, as investors look to capitalize on the potential of this new technology.
The recent surge in the price of Bitcoin, breaking through the $45,000 mark for the first time in two years, has further fueled the excitement around Web 3.0. This is largely due to the expectation of the approval of a spot Bitcoin exchange-traded fund in the United States.
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