The crypto market witnessed a significant surge in investment, with inflows totaling an impressive $103 million during the week ending December 22. This sharp reversal comes on the heels of a previous week that saw $16 million in outflows, signifying a remarkable shift in investor sentiment.
The latest data reveals that crypto exchange-traded products (ETPs) have been on an impressive streak, experiencing inflows for 12 out of the past 13 weeks. The current bull market for crypto fund products appears to have kicked off in the week of September 29, marking a stark contrast to the previous trend where crypto funds had grappled with outflows for eight out of the nine weeks leading up to this period.
James Butterfill, Head of Research at CoinShares, took to Twitter to share the news, stating, ” $103m inflows in digital assets last week, no report on Monday. Merry Christmas.” Butterfill accompanied his tweet with charts indicating that Bitcoin funds were the major beneficiaries, raking in over $87.6 million, constituting an impressive 85% of the total. Ethereum followed as a distant second, recording $7.9 million in inflows. However, Litecoin and Avalanche ETPs diverged from the overall positive trend, registering net outflows of $400,000 and $2.6 million, respectively.
When scrutinized by region, Germany emerged as the frontrunner, boasting the largest inflows from any country at just over 40% of the total. Canada secured the second spot, representing 25% of the total inflows. The United States contributed 20%, and Switzerland added nearly 15% to the global influx of funds.
Venture Capital In Crypto & Blockchain Startups
In tandem with this crypto investment surge, the landscape for venture capital (VC) in the crypto and blockchain startup arena experienced a notable transformation in 2023. According to a report, venture capitalists directed $10.7 billion into the sector during the year, marking a 68% decline from the staggering $33.3 billion invested in 2022. This decline can be attributed to several factors, including a regulatory crackdown by the U.S. federal government, a crypto bear market, and a broader downturn in venture capital.
Despite the challenges posed by regulatory uncertainties and market downturns, 2023 still stands as the third-highest year in terms of total investment in the digital assets and blockchain startup arena. However, it pales in comparison to the unprecedented levels seen in 2022.
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