Crypto Investment Products Record $243 Million Inflows in Final Week of 2023, Yearly Total Reaches $2.2 Billion – CoinShares

CoinShares, the crypto asset management firm, reported that the inflows to crypto investment products over the final week of 2023 totaled $243 million, taking the year’s total to $2.2 billion, marking the second straight year of record inflows. The year’s total nearly surpassed the previous high set in 2017 when the cryptocurrency craze first exploded.

The inflows for the week ending Dec. 31 came from institutional investors, with large financial institutions accounting for the majority of activity, according to CoinShares’ data. Bitcoin was the star of the year’s record inflows, recording $1.7 billion, a 40 percent increase from 2018. Ethereum investments grew even more significantly, jumping 195 percent to $363 million.

CoinShares’ research also revealed that the U.S. remained the biggest market in crypto investments for the second straight year, with inflows of $690 million in 2023, a 56 percent jump from 2018. In the U.K., there was an even bigger jump as investments surged by 186 percent to $290 million.

Meanwhile, Asia also showed a strong interest in the sector as inflows in the region grew from $35 million in 2018 to $473 million in 2023. Japan once again topped the list in the region, with inflows surging almost 430 percent to $272 million.

The data indicates that institutional investors are continuing to look to cryptocurrencies for potential profits, particularly as a hedge against potential upheavals in the traditional financial markets. It seems that, while the industry is still relatively young, investors are increasingly turning to cryptocurrencies – and the blockchain technology that underpins them – for a more secure place to store their money. With the rising demand for crypto, it appears that 2023 could be a huge year for the industry.