Bitcoin

Institutions Beware of Bitcoin As Short Bitcoin Products See Record Outflows

Leading digital asset manager CoinShares says that many institutional investors appear to be turning more cautious towards Bitcoin (BTC) and positioning themselves as BTC short sellers.

In its latest Digital Asset Fund Flows Weekly report, CoinShares found that digital asset investment products saw a positive week in capital flows, mainly coming from the distribution of funds supplement for Short BTC products.

“Digital asset investment products saw a total inflow of $64 million last week, although the headline figures obscure the fact that a significant majority was in short-term Bitcoin investment products ($51 million).”

As mentioned, 79% of the inflows come from Short BTC investment products or products that seek to borrow Bitcoin to sell in the market before buying it back at a lower price.

Source: Bloomberg, CoinShares

According to the company, the small influx of BTC long-term investment products probably supports the bearish argument.

“Regions other than the US such as Brazil, Canada, Germany and Switzerland saw smaller inflows into long investment products, totaling US$20 million.
This highlights that investors are adding long positions at current prices, rather than renewing negative sentiment due to an influx in short-bitcoins, possibly first reaching the US.
There was little inflow into bitcoin during the week, totaling only US$0.6 million. Short-BTC saw a record inflow of US$51 million total following the product launch in the US.”

CoinShares is referring to the launch of ProShares Short Bitcoin Strategy ETF (BITI) on June 21.

Ethereum (ETH), Solana (SOL), Polkadot (DOT), Cardano (ADA), and multi-asset crypto investment products all enjoyed inflows for the week, bringing in $4.9 million, $1 million, $0.7 million, $0.6 million and $4.4 million, respectively.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.