Data from 2023 indicates a substantial influx of $2.25 billion into digital asset investment products, marking it as the third-highest year since 2017.
While 2020 and 2021 outpaced 2023 with $6.6 billion and $10.7 billion, respectively, the recent surge signifies a noteworthy recovery from the lower inflows observed in 2022, which were merely a fraction of the current figure.
$1.9B Inflows In Bitcoin In 2023
Bitcoin emerged as the primary beneficiary in 2023, experiencing inflows of $1.9 billion, constituting a staggering 87% of the total flows. This dominance surpasses previous years, with 2020 being the closest contender when Bitcoin received 80% of the flows.
The contrast is particularly striking in 2017, where Bitcoin accounted for just 42% of the flows. This heightened dominance is attributed to factors like the SEC ETF clearance and the associated market excitement, indicating a unique trend in the asset class.
Digital asset investment products saw $2.25bn of inflows for the full year in 2023, marking it as the 3rd largest year based on data back to 2017. Bitcoin has $1.9bn inflows, representing 87% of total flows. Solana saw $167 million in inflows, surpassing Ethereum’s $78 million.…
— Wu Blockchain (@WuBlockchain) January 4, 2024
Other Notable Inflows To Watch
In comparison, Ethereum witnessed increased inflows, reaching $78 million by the end of the year. However, this still represents a relatively modest portion of the overall Assets under Management (AuM), accounting for only 0.7%. Ethereum continues to trail behind Bitcoin in terms of attracting investor interest.
Solana, on the other hand, capitalized on investor hesitations related to Ethereum. Solana recorded significant inflows of $167 million, constituting a notable 20% of AuM. This trend underscores a strategic shift by investors seeking alternatives to Ethereum, contributing to Solana’s impressive performance in attracting capital.
In summary, 2023 has proven to be a pivotal year for digital assets, witnessing substantial inflows despite not reaching the heights of 2020 and 2021.
Bitcoin’s unparalleled dominance and the strategic choices made by investors in favor of alternative platforms like Solana have shaped the trajectory of digital asset investments over the past year.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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