Digital asset funds see total inflows of $433 million during 2022, the lowest level since 2018, when inflows into the crypto industry reached $233 million, according to cryptocurrency investment firm Coinshares.
Investors’ appetite for digital assets seems not to be affected by the future of crypto, but it also encourages investment in crypto assets in a year marked by a drop in prices and the collapse of many industry players. James Butterfill, researcher at CoinShares, noted in his weekly report that:
“In a year when the price of bitcoin fell by 63%, a clear bear market triggered by irrational exuberance and a hawkish FED, it is encouraging to see investors at all still choosing to invest.”
The biggest gainers in 2022 were Bitcoin (BTC) and multi-asset investment products, with inflows of $287 million and $209 million, respectively. Inflows last year were lower than in 2020 and 2021, two bull market years, when they reached $9.1 billion and $6.6 billion.
2022 also saw the emergence of short-investment products, according to reports, total inflows of $108 million, representing only 1.1% of the total Bitcoin under management. “They remain a special asset,” the researcher said.
Canada and Sweden had the largest outflows last year, totaling $436 and $446, respectively.
Among the biggest declines in assets, Ether experienced an outflow of $402 million in 2022. “Ethereum has experienced a turbulent year that we believe is due to investor concerns about the successful transition to proof of stake and continued problems during the un-staking period, which we believe will occur in Q2 2023,” Butterfill said.
The report also showed that mid-year outflows in 2018 exceeded those in 2022, with total weekly outflows reaching 1.8% of total assets under management (AuM). In comparison, outflows in 2022 reached a weekly peak of just 0.7%.