Institutional interest in Bitcoin shorting hits record highs in the US (report)

Bitcoin price short exposure saw record inflows of $51 million last week as the asset crashed below $20,000, according to a new report.

The short circuit dominates in the United States

According to CoinShares’ latest weekly “Digital Asset Fund Flows” report, a total of $64 million in inflows into digital asset investment products were seen between June 27 and July 1, and a significant portion of 80% was spent shorting Bitcoin investment products. .

The short-selling interest comes as Bitcoin posted the worst quarterly performance in a decade. Gloomy macro forecasts, looming recession fears, and top crypto companies grappling with the impact of the selloff all contributed to the bearish sentiment.

As a result, the United States accounted for $46.2 million in admissions. The recently launched ProShares Short Bitcoin Strategy ETF, a fund that tracks betting against the price of Bitcoin alone, has generated over $43 million in inflows over the past week.

CoinShares noted that the accessibility of ProShares’ BITI offering short exposure via futures for investors considering a bet against Bitcoin drove the current numbers.

“This highlights that investors are adding long positions to current prices, with inflows into short bitcoin possibly driven by early US accessibility rather than renewed negative sentiment.”

In addition to the United States, entries into long Bitcoin positions were seen in Brazil, Canada, Germany, and Switzerland, totaling $20 million.

The surge in Bitcoin short bottoms comes a week after CoinShares reported the largest ever digital asset product outflows, which hit an astonishing record high of $423 million. Bitcoin products saw net outflows worth $453 million during this period.

Diversification has begun

Investors are also starting to diversify, as inflows from several altcoins such as Solana, Polkadot, and Cardano totaled $1 million, $0.7 million, and $0.6 million, respectively. Ethereum also managed to finally break the 11 weeks of outflows by scooping up $5 million in inflows over the past week.

Additionally, multi-asset investment products managed to float relatively smoothly despite the crypto carnage of the previous weeks. The report suggests that this product cohort was the least affected by negative crypto winter sentiment and saw inflows worth $4.4 million while recording minor outflows just two weeks of this year. .


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