Institutional investors bought $51.4 million worth of investment products last week. However, these are short positions on the Bitcoin (BTC) price.
According to the data from the current weekly CoinShares report “Digital Asset Fund Flows” on the flows of digital assets, there were inflows of $ 64 million for digital investment products between June 27 and July 1. Short BTC funds accounted for 80 percent of this.
US investors accounted for the lion’s share of inflows, amounting to $ 46.2 million. Short BTC investment products have seen strong demand after ProShares launched the first exchange-traded short BTC fund (ETF) in the US on June 22. The ETF is traded under the ticker BITI and offers short selling via futures contracts:
“This shows that investors are increasing their long positions at the current prices. The inflows into short Bitcoin ETFs may be due to the initial availability of such in the US rather than a renewed negative sentiment.”
CoinShares also noted that institutional investors from Brazil, Canada, Germany and Switzerland have purchased crypto investment products worth a total of $20 million. Sweden partially offset this amount with outflows in the amount of $ 1.8 million.
Short BTC products have recorded inflows of $77.2 million so far this year, lagging only behind multi-asset products and Solana (SOL) products, which have so far recorded inflows of $ 213.5 million and $ 110.3 million in 2022.
Looking at the inflows for other digital investment products, Ether (ETH) products generated $4.9 million. This is the second consecutive week of inflows, after 11 consecutive weeks of outflows. Nevertheless, ETH funds are still in the red with outflows of USD 450.9 million so far this year.
The remaining inflows of US$ 4.4 million were distributed among multi-asset funds. Products related to SOL, Polkadot (DOT), Cardano (ADA) and BTC have also recorded smaller inflows of $1 million, $700,000, $600,000 and $600,000 respectively.
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The week before, there were outflows of $ 423 million in digital investment products. This is the highest ever recorded by CoinShares. In particular, short BTC funds were spared from the declines this week, recording inflows of $ 15.3 million, while BTC products recorded significant outflows of $453 million.