The capital inflow into crypto investment projects exceeded $2.2 billion in 2023. The figures were almost three times higher than in 2022. At that, Bitcoin-based products received about 87% of the total amount of invested funds.
According to CoinShares, 2023 was one of the most successful years for crypto hedge funds over the past seven years. Crypto funds received $2.225 billion during the year. Investors put about $243 million into various investment products based on digital assets in the last week of the year alone.
The capital inflows into Bitcoin products totaled $1.9 billion in 2023, accounting for more than 87% of the overall funds received by crypto funds. Investment assets based on Solana and Ethereum came in second and third place, with $167 million and $78 million invested over the year, respectively.
Assets under management (AUM) reached the $51.04 billion mark by the end of the year, showing steady growth throughout the year and up 109% year-over-year. Notably, the leaders in terms of AUM levels were crypto funds based on Bitcoin with a 60% share ($35.17 billion) and Ethereum with a 20% share ($9.86 billion).
Among countries, the United States became the leader in investment levels in 2023 — local investors poured about $792 million into various crypto funds over the year. Second and third place went to Germany and Canada, whose investors put in $663 million and $543 million, respectively.
CoinShares analysts attribute the rise in performance in 2023 primarily to the hype surrounding the approval of spot Bitcoin and Ethereum ETFs in the U.S. They also claim that the capital inflow into crypto funds will actively continue in 2024, and so will the growth of quotations.
Bitcoin managed to break through the $45,000 mark earlier this year.
