Crypto Asset ETPs See $2.2B Inflows in 2023 Amid Anticipation of Spot Bitcoin ETF Launch

By: Isha Das

In 2023, inflows into digital asset exchange-traded products (ETPs) picked up pace, with a total of $2.2 billion registered compared to $816 million in 2022, marking a 169% YoY increase. The data was highlighted by CoinShares' analyst James Butterfill. Furthermore, the year ended on a positive note as the last week alone saw $243 million in inflows. The steady rise in inflows has been attributed to market anticipation surrounding a host of potential spot Bitcoin ETF launches in the U.S. expected between January 8-10.

Looking closely at the $2.2 billion total inflows, Bitcoin took the lead, accounting for $1.9 billion and amassing an Assets Under Management (AUM) of $38.5 billion. Ethereum followed, although a distant second, with inflows worth $78 million and holding an AUM of $10.1 billion. Interestingly, Solana-related products outperformed Ethereum in terms of inflows with $167 million, while holding a smaller AUM of $844 million. By the end of 2023, the total AUM for all coins reached $53.6 billion, according to CoinShares.

The data underscores the increased investor interest in digital asset ETPs and hints at the potential impact the introduction of Bitcoin ETFs could have on the market. As of now, all eyes are on the U.S. regulatory bodies for the final verdict.