In a significant development for the crypto market, CoinShares, a leading crypto asset manager, revealed that spot bitcoin exchange-traded products (ETPs) debuted in January have been instrumental in drawing the largest inflows last week. These Bitcoin ETFs witnessed an impressive $1.1 billion of inflows, accumulating a total of $2.8 billion since their introduction on January 11.
The Leading Players
BlackRock and Fidelity emerged as the frontrunners in these inflows, further solidifying their positions in the crypto investment landscape. This surge in investments has propelled the total assets under management (AuM) for crypto investment products to a record high of $59 billion, marking the highest level since early 2022.
The Regional Divide
Interestingly, the focus has predominantly been on the newly issued spot-based Bitcoin ETFs in the US. However, outflows from other regions have shown signs of cooling off, with only minor outflows reported from Canada and Germany.
The data indicates that Bitcoin has garnered almost 98% of the inflows, highlighting its continued dominance in the crypto market. While Ethereum, Cardano, Avalanche, Polygon, and Tron also registered minor inflows, they were dwarfed by Bitcoin’s substantial gains.
The Equities Landscape
In the realm of blockchain equities, one issuer reported outflows, while all other issuers recorded inflows. This suggests a positive sentiment towards blockchain technology and its potential for future growth.
CoinShares, in its Q4 2023 results, reported strong inflows of $1.1 billion, taking the year-to-date inflows to $2.7 billion. This significant growth has pushed the assets under management (AuM) to a peak of $59 billion, the highest level since early 2022.
The spot-based Bitcoin ETFs in the US have been the primary focus, with net inflows of $1.1 billion last week. Bitcoin accounted for nearly 98% of these inflows, with Ethereum and Cardano also registering positive sentiment due to their price appreciation.
In a strategic move, CoinShares’ board of directors adopted an amended dividend policy. According to this policy, annual dividend payments will be between 20% and 40% of the Group’s annual total comprehensive income, excluding currency translation differences. The dividend will be payable in SEK in four quarterly installments.
CoinShares, a prominent European alternative asset manager specializing in digital assets, offers a suite of financial services to a diverse clientele that includes corporations, financial institutions, and individuals. It is regulated in Jersey, France, and the US.
With its robust EBITDA throughout 2023 and its strongest quarter in Q4 since 2021, CoinShares is set to make 2023 its second-best year on record. As the crypto market continues its upward trajectory, CoinShares is well-positioned to capitalize on this growth and deliver value to its stakeholders.
Note: All figures and statistics are accurate as of February 13, 2024.