Exposure to the price of bitcoin saw a record inflow of $51 million last week as the asset plunged below $20,000, a new report shows.
Shorting Dominate in America
According to the latest CoinShares weekly ‘Digital Asset Fund Flow’ report, digital asset investment products saw a total inflow of $64 million between June 27 and July 1, and a substantial 80% went into shorting bitcoin investment products. . ,
The interest in shorting comes as bitcoin posted its worst quarterly performance in a decade. A gloomy macro forecast, fears of an impending recession, and high-profile crypto firms battling the effects of a sell-off have all contributed to the bearish sentiment.
As a result, the US received $46.2 million in inflows. The recently launched ProShares Short Bitcoin Strategy ETF, a fund that bets against the price of bitcoin alone, saw more than $43 million worth of inflows in the past week.
CoinShares noted that BITI’s access to ProShares offering shorting exposure through futures contracts to investors betting against bitcoin had prompted the current data.
“This highlights that investors are adding to long positions at current prices, with an influx in short – bitcoin rather than renewing negative sentiment possibly due to first access in the US.”
In addition to the US, Brazil, Canada, Germany and Switzerland saw inflows into long positions on bitcoin, totaling $20 million.
Short Bitcoin Fund surge comes a week after CoinShares reported the largest digital asset offering outflow ever reached an astonishing record-high of $423 million. Bitcoin products saw a net outflow of $453 million during this period.
Diversification has begun
Investors are beginning to diversify as several altcoins such as Solana, Polkadot and Cardano totaled $1 million, $0.7 million and $0.6 million inflow. Ethereum also managed to eventually break the 11-week outflow by breaking the $5 million inflow in the previous week.
Furthermore, multi-asset investment products managed to float relatively smoothly despite the crypto massacre several weeks ago. The report suggested that this group of products was least affected by the negative sentiments of the crypto winter and saw an inflow of $4.4 million in just two weeks of the year registering modest outflows.
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.