CoinShares’ yearly digital asset funds report proved that 2022 was net positive for the investment class, albeit at the lowest levels since 2017.
According to the data, combined inflows across all investment vehicles – including Grayscale, CoinShares, 21Shares and ProShares – totalled US$433mln, although US$108mln comprised short-Bitcoin positions betting against BTC’s price.
Bitcoin was the most popular asset class, followed by multi-asset funds and Short Bitcoin, while Ethereum saw the largest outflows of US$402mln.
In comparison, total inflows for 2021 were over US$9bn and total inflows for 2020 were over US$6.5bn.
“In a year where bitcoin prices fell by 63%, a clear bear market precipitated by irritation exuberance and an overly hawkish (Federal Reserve), it is encouraging to see investors on the while still choosing to invest and in many cases tactically adding to positions during price weakness,” said CoinShares.
Grayscale remains easily the largest cryptocurrency investment vehicle with more than US$14.5bn in assets under management (AUM), yet it failed to attract much interest in 2022 with only US$6mln flowing into the trust.
Grayscale flagship Bitcoin Trust (GBTC) is suffering a near 50% discount to its underlying assets due to ongoing wranglings with the US Securities and Exchange Commission (SEC), not to mention adverse effects arising from parent company Digital Currency Group’s high-profile legal troubles.
In terms of jurisdictions, investors in popular crypto hub Switzerland were the most active, followed by the US, Germany and Brazil.