Last year, the inflow of funds into crypto asset-related products reached an astonishing $44.2 billion, nearly four times the historical high of $10.5 billion in 2021.
According to CoinShares' latest report, this record-breaking performance is attributed to the launch of U.S. spot exchange-traded funds (ETFs), which greatly impacted global investments.
BTC dominated, attracting $38 billion in inflows, accounting for 29% of total assets under management (AuM).
The large inflow of BTC also led to a significant increase in holdings of BTC ETFs, which exceeded one million in less than a year since their launch.
BlackRock's IBIT and Fidelity's FBTC and other leading products attracted the most attention.
Notably, IBIT surpassed nearly 3,000 other ETFs, becoming the most successful ETF product of the past decade.
On the other hand, Grayscale's GBTC saw the largest outflow last year, with investors withdrawing over $21 billion from the fund to invest in cheaper alternatives.
Despite this, the positive flow of ETF products has made the U.S. the leader in global inflows, attracting nearly all of the $44.4 billion, followed by Switzerland with $630 million.
However, significant outflows occurred in Canada and Sweden, totaling $707 million and $682 million respectively, partially offsetting the gains mentioned above.
CoinShares Research Director James Butterfill pointed out that the outflow of funds indicates a shift in investments from these regions to U.S. products, highlighting the growing appeal of the U.S. crypto asset market.
Butterfill also noted that BTC surged to a historic high of over $100,000 last year, resulting in inflows of $116 million into BTC short products.
Ethereum's performance was also outstanding, especially with its resurgence in the second half of this year.
Due to the strong performance of Ethereum spot ETFs at the end of the year, the digital asset received $4.8 billion in inflows.
This inflow accounted for 26% of its total assets under management, 2.4 times the total inflow in 2021, significantly exceeding 2023's performance.
Meanwhile, Ethereum's gains outpaced its competitor Solana, which managed $69 million in inflows, accounting for only 4% of its assets under management.
Other large-cap tokens, such as Polkadot, Cardano, and XRP, collectively attracted $813 million, accounting for 18% of their net assets.
Meanwhile, U.S. BTC investment products started strong this year, with inflows reaching $666 million in the first two trading days.
According to Farside data, on January 3, the single-day inflow was $908 million, with Fidelity leading at $357 million, followed by BlackRock and ArkInvest at $253 million and $222 million respectively.
