Last week, institutional investors bought a record $51.4million worth of investment products that offered exposure to shorting Bitcoin’s price (BTC).
According to the most recent edition of CoinShares’ Weekly “Digital Asset Fund Flows Report”, there were $64 million inflows into digital asset products between June 27th and July 1st, with short BTC funds accounting for 80%.
U.S. investors made up the majority of the $46.2 million inflows. Short-BTC investments products are in high demand following the launch by ProShares on June 22nd of the first U.S.-based short Bitcoin Exchange-Traded Fund (ETF). The ETF trades as BITI under the ticker and provides shorting exposure via futures.
This shows that investors are increasing their long positions at current prices. The inflows to short-Bitcoin could be due to the first-time access to the US, rather than renewed negative sentiment.
CoinShares noted that institutions from Brazil, Canada and Germany bought a total of $20 million worth crypto investment products. Sweden offsets that figure partially with $1.8 million in outflows.
Year-to-date, short BTC products have seen inflows of $77.2 million. This puts it behind multi-asset and Solana products (SOL), which have posted $213.5 and $110.3 respectively in inflows in 2022.
The inflows of other digital assets products showed that those offering Ether (ETH exposure) have generated $4.9million. This is the second consecutive week with inflows, after an 11-week trend towards shedding. However, ETH funds have still been down year-to-date with outflows of $450.9million.
The rest of the inflows were spread across multi-asset investments at $4.4million, while SOL and Polkadot(DOT), Cardano and BTC products also saw minor inflows, $1 million, $700,000., $600,000., and $600,000.
Related: CoinShares buys Napoleon AM, a French crypto asset manager
This week’s surge in short BTC funds inflows follows the previous week, when $423 million was spent on digital asset products. It is the largest outflow ever recorded by CoinShares. Short BTC funds saw $15.3 million inflows while BTC products saw substantial outflows of $453 millions.
Eileen Wilson –Technology and Energy
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