Digital assets saw inflows totaling $433 million during 2022 – the lowest amount since 2018 went inflows topped $233 million. In 2021, inflows totaled $9.1 billion, significantly higher. This is according to a report distributed by Coinshares (Nasdaq Stockholm: CS)(OTCQX: CNSRF).
According to the firm, outflows in 2022 reached a weekly peak representing 0.7% of AuM.
At the same time, Coinshares is putting a positive spin on the numbers pointing to a Fed that is “overly hawkish” and a bear market that was precipitated by irrational exhuberance.
“Bitcoin and multi-asset investment products were the main beneficiaries, seeing inflows totaling $287 million and $209 million respectively. Ethereum had a tumultuous year which we believe was due to investor concerns over a successful transition to proof of stake and continued issues over the timing of un-staking, which we believe will occur in Q2 2023. 2022 saw the emergence of short-investment products, which saw inflows of $108 million, they remain a niche asset which represent only 1.1% of total Bitcoin AuM.”
While the macro environment is challenging for most asset classes, crypto markets have also been challenged by obtuse regulatory requirements and multiple bankruptcies and reports of fraud during 2022. Both must be fixed for solid footing in the digital asset markets.