Crypto Assets Under Management Surged 14% as Daily Trading Volumes Recorded 33% Increase in December
The digital asset market recorded massive highs on several fronts in Q4 2023 as institutional investors tightened their bullish grip on the market in anticipation of a spot Bitcoin (BTC) ETF approval in the United States.
A new report released by CCData on the fourth quarter performance of cryptocurrencies shows heightened bullish sentiment sparked by multiple factors leading to positive on-chain metrics.
As more funds entered the markets in December, daily trading volumes rose by 33.9% ending the year on a strong foot. A new 20-month daily trading volume was set at $659.5 million, the largest since January 2022 among cryptocurrency products.
“The surge in trading volumes suggests a vigorous trading environment and may indicate an escalating interest in digital asset products.”
Institutional inflows in crypto funds in 2023 dominated the scene coming back from a horrid 2022 which saw asset prices plunge significantly ushering in the market winter. The rise in asset prints and market conditions saw most platforms record highs not seen in months and bulls continued to point north.
The final week of 2023 saw US$243m of inflows into digital asset ETPs, bringing 2023 total flows to US$2.2bn. pic.twitter.com/EtdHQWlu2K
— James Butterfill (@jbutterfill) January 3, 2024
Still, on the institutional front, ProShares BITO recorded a 28% spike in trading volumes to $345.5 million while Grayscale GBTC dominated the narratives, particularly after the firm’s court victory over the Securities and Exchange Commission (SEC) on its spot BTC ETF application posted a 67% increase to $197.8 million.
“Purpose Invest BTCC experienced modest growth, with volumes nudging up by 1.6% to $10.3 million. ProShares BITI, conversely, had a robust increase of
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