Digital Asset ETPs Attract Over $2 Billion in Investments in 2023

According to CoinDesk, investors poured over $2 billion into digital asset investment exchange-traded products (ETPs) in 2023, making it the third-largest year for net inflows since 2017. The inflows in 2023, totaling $2.2 billion, were more than double that of 2022. CoinShares' James Butterfill noted that the majority of this money came in the final quarter, as it became increasingly clear that the SEC was warming up to the launch of bitcoin spot-based ETFs in the United States. The final week of 2023 alone saw $243 million of net inflows into digital asset ETPs. Bitcoin (BTC) dominated the numbers with $1.9 billion of inflows last year, accounting for 87% of the $2.2 billion total. CoinShares stated that this ratio was the largest ever, with the previous high of 80% occurring in 2020. The price of bitcoin rallied throughout the year, climbing around 155% to close 2023 above $42,000. Solana (SOL) related investment products also had a strong 2023, with $167 million of net inflows. In contrast, Ethereum (ETH) lagged with just $78 million in inflows.