According to CoinShares report, “Bitcoin prices fell by 63%, digital assets saw inflows totalling US$433 Million for 2022.”
The report is prepared by James Butterfill, Head of Research at CoinShares. He noted in the report that, “Digital assets saw inflows totalling US$433 Million for the whole of 2022, the lowest since 2018 when there were inflows of only US$233 Million.
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.
2022 saw the emergence of short-investment products which saw inflows of US$108 Million, they remain a niche asset which represent only 1.1% of total Bitcoin AuM.”
“Proportionally, the mid-year outflows in early 2018 were far more aggressive than they were in 2022 with total weekly outflows at one point reaching 1.8% of total assets under management. In comparison, the outflows in 2022 reached a weekly peak representing only 0.7% of AuM. Regardless, the inflows were significantly lower than in 2021 and 2020 when there were inflows of US$9.1 Billion and US$6.6 Billion respectively,” as Mr. Butterfill noted in the weekly 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, and in many cases tactically adding to positions during price weakness.”
Investors see Bitcoin (BTC) and Ethereum (ETH) differently: as BTC saw US$287 Million inflows, and ETH saw US$407 Million of outflows. This is even more noteworthy as both assets performed roughly the same in 2022, with pricing falling in the 63-67% range.
Bitcoin and multi-asset investment products were the main beneficiaries, seeing inflows totalling US $287 Million and US $209 Million respectively. Ethereum had a tumultuous year due to investor concerns over a successful transition to proof of stake and continued issues over the timing of un-staking, which will occur in Q2 2023.
2022 saw the emergence of short-investment products which saw inflows of US$108 Million, they remain a niche asset which represent only 1.1% of total Bitcoin AuM.
Short-BTC products took off but remained marginal. Inflows were multiplied by 3x in 2022 compared to 2021 for an AuM of US$156 Million. It represents only 1.1% of the total Bitcoin AuM, with a total AuM inferior to BTC inflows in 2022 (US$287 Million).
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/01/05/the-inflow-of-digital-asset-investment-products-in-2022-report/