Crypto ETPs Garner $2.2 Billion in 2023 Investment Surge

Investors flooded over $2 billion into digital asset exchange-traded products (ETPs) last year, marking the third-highest inflow since 2017, according to CoinShares data. The $2.2 billion influx, more than double that of 2022, intensified in the final quarter, driven by increasing SEC interest in US bitcoin spot-based ETFs. The last week of 2023 alone witnessed a substantial $243 million net inflow into digital asset ETPs.

Celsius Unstakes ETH Holdings Amidst Restructuring, Affects Ether (ETH) Prices

Crypto lender Celsius, undergoing bankruptcy restructuring, plans to sell its substantial ETH holdings, potentially boosting Ether prices in the coming weeks. The company, transitioning to a bitcoin miner, initially included staking but now shifts focus due to restructuring costs. The move aims to offset expenses and facilitate timely creditor distributions.

Celestia's TIA Token Surges Over 22%, Defies Broader Market Trends

Celestia's TIA token gained momentum, surging over 22% in 24 hours, outperforming the broader market. Staking interest and blockchain technology hype drove the rally, with TIA's trading volume reaching a record $800 million. Offering an annual yield of 15% to 17%, the token's high returns, compared to the US 10-year Treasury note's 4% risk-free rate, attract cryptocurrency demand. TIA's market cap, just under $2 billion, hints at potential profits for participants amid a bullish market.

Analyzing Bitcoin's Market Depth and Liquidity Challenges

Examining bitcoin's 1% market depth, which gauges buy and sell orders within 1% of the mid-price, reveals challenges in liquidity. Despite bitcoin's 60% surge in Q4 2023, the 1% market depth struggled to recover from Alameda's impact in late 2022. Analysts speculate on potential improvements with the anticipated launch of spot ETFs.

Despite positive market movements, challenges persist, emphasizing the need for cautious optimism in the dynamic crypto landscape.