Digital Assets Inflows Reached $433M In 2022: Report
Digital assets funds saw inflows totaling $433 million during 2022, the lowest level since 2018, when inflows in the crypto industry reached $233 million, according to the cryptocurrency investment firm Coinshares.
Digital Assets Inflows Reached $433M In 2022: Report
Investors’ appetite for digital assets seems not to have been fully affected by the crypto winter, but otherwise encouraged investments in crypto assets in a year marked by a price decline and the collapse of many industry players. James Butterfill, researcher at CoinShares, noted in the weekly report that:
Digital Assets Inflows Reached $433M In 2022: Report
“In a year where bitcoin prices fell by 63%, a clear bear market precipitated by irrational exuberance and an overly hawkish FED, it is encouraging to see investors on the whole still choosing to invest.”
Digital Assets Inflows Reached $433M In 2022: Report
The biggest gainers of 2022 were Bitcoin (BTC) and multi-asset investment products, with inflows amounting to $287 million and $209 million, respectively. Last year’s inflows were significantly lower than in 2020 and 2021, both bull market years, when they reached $9.1 billion and $6.6 billion, respectively.
Digital Assets Inflows Reached $433M In 2022: Report
2022 also saw the emergence of short-investment products, according to the report, amounting to inflows of $108 million, representing only 1.1% of total Bitcoin under management. “They remain a niche asset,” stated the researcher.
Digital Assets Inflows Reached $433M In 2022: Report
Canada and Sweden had the largest outflows last year, totaling $436 and $446, respectively.
Digital Assets Inflows Reached $433M In 2022: Report
Among the largest declines by assets, Ether saw $402 million in outflows in 2022. “Ethereum had a tumultuous year which we believe was due to investor concerns over a successful transition to proof of stake and continued issues over the timing of un-staking, which we believe will occur in Q2 2023,” noted Butterfill.
The report also indicated that mid-year outflows in 2018 exceeded those in 2022, with total weekly outflows reaching 1.8% of total assets under management (AuM). Comparatively, the outflows in 2022 reached a weekly peak amounting to just 0.7%.
