Inflows to crypto funds over the past 12 months were the lowest since 2018. According to CoinShares, in 2022, institutional investors sent $433 million to such instruments.
As James Butterfill, head of the company’s research division, noted, the “cryptozyme” had a negative impact on institutional sentiment. However, there was no large-scale capital flight from products focused on digital currencies.
Investors, even as bitcoin and other cryptocurrencies fell, continued to enter the funds.