In the year 2023, I published plenty of articles here on Publish0x discussing weekly flows of the Digital Asset Investments, tracked by the CoinShares. Today, in this short article, we will look into the entire picture at a broader level and understand how these flows carried out for the year 2023. So without any further delay, let’s dive in…!!
Note: The purpose of this article is to share the data/knowledge regarding the crypto space and not a financial advice to invest in any particular crypto assets.
The Complete Picture
In the previous year, 2023, Digital Assets Investment products had the total inflow of $2.25 billion US dollars, which ranks year 2023 at the third place of the largest inflows in Digital Asset Investment products. Previously, in 2020 there was an inflow of $6.6 billions and in 2021 which ranks at number one with the total inflow of $10.7 billion.
Interesting thing is that, there were lot of things happened in the last year, things like FTX, Celsius, lots of hacks, then regulatory actions and push backs from crypto space, certainties regarding ETFs and many other things. Despite of these things, there was a huge inflow of the money in crypto space. Actual momentum was set in the last quarter of the year, which indicates that lot of this inflow is driven by the anticipation of the crypto spot ETF approvals, it will be interesting to see how things actually work out once the SEC announce their results. [10th Jan is the date]
Token-wise Inflows
Bitcoin for obvious reasons is the most preferred coin that saw the most of the investment, which amounts to $1.9 billions which is around 87% of the entire inflow of the year. And it is normal to see that percentage is getting invested in Bitcoin as it is the most influential crypto. And it is also important to consider, whenever new things are going to happen at institutional levels, whether it be ETFs or any other systematic investments Bitcoin will the first preference and later the money will flow in the Altcoins.
The second most influential coin in the crypto space, Ethereum had some pull back in the terms of digital asset investments. In the year 2023, a total of $78 millions, which is ~0.7% of the total inflows. Surprisingly, the Solana (SOL) had the second largest investments flows counting to the amazing total of $167 millions.
Region-wise Inflows
Now let’s understand the inflows from the region perspective. As always, United States ranks at number one with the total investment of $792 millions in the 2023, followed by Germany and Canada, with the investments of $663 millions and $543 millions respectively. Even though the total shows big but considering the Total Assets Under Management (AUM), United states added only 2% of their AUM in 2023, whereas the Germany and Canada invested approx. 22% and 15% of their AUMs in year 2023.
Conclusion
It is interesting to see despite of crazy things happening in the crypto space, there is lot of money flowing in the crypto space. And it is important to consider that there is still a lack of regulatory clarity which surely will be keeping lots of big players to invest in the crypto space. Once the regulations are clearer then we might see massive amounts of money getting flooded in the crypto space!
Hope you find this article interesting, and informative. If yes, then do follow me for more such crypto content. 🎊🎊 HAPPY NEW YEAR 🎊 🎊
Thanks for your time...!!
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