Investors pour $1 billion into crypto funds in 2023, third largest annual inflow on record

A man walks past an electric board showing exchange rates of various cryptocurrencies including Bitcoin (top L) at a cryptocurrency exchange in Seoul, South Korea, on December 13, 2017.REUTERS/Kim Hong Ji

  • Crypto fund inflows added $293 million last week, pushing the total for the year above $1 billion, according to CoinShares.

  • Year-to-date inflows reached $1.14 billion, the third largest annual inflow on record.

  • Total assets under management jumped 9.6% last week and are up 99% year-to-date, the report said.

Cryptocurrencies such as bitcoin and ether recovered in 2023helping to generate large inflows into crypto funds throughout the year.

According to CoinShares, asset managers including ProShares, 21Shares, Grayscale and others have generated more than $1 billion in inflows so far this year, with $293 million in the past week alone.

Year-to-date inflows are $1.14 billion, the third largest in history, CoinShares said. At the same time, total assets under management jumped by 9.6% last week and by 99% since the start of 2023.

Inflow of cryptocurrency funds through CoinShares

Weekly inflow of crypto assetsCoinShares

At $44.3 billion, total assets under management are now the highest since May 2022.

Last week, bitcoin fund inflows totaled $240 million, while ether investment products recorded the largest inflow since August 2022, at $49 million.

Bitcoin is up more than 120% this year and ether is up about 76%. Optimism has swirled in recent months over the possibility that the US could soon see its first spot crypto ETF, with asset management giants including BlackRock and Fidelity set to file for approval with the Securities and Exchange Commission.

Last week, BlackRock also filed for approval of an ethereum ETF.

Bitcoin’s upcoming “halving” has also fueled gains as investors prepare for the event, which is expected in the middle of next year. Previous halving events have been followed by new token highs over the next 12 months.

Industry veterans have predicted that this event could send bitcoin back to an all-time high and beyond, and some forecasters are watching prices above the six-digit mark.

Read the original article at BusinessInsider

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