Following the debut of the first short-bitcoin ETF in the US, institutional investors’ interest in shorting Bitcoin reached historic highs. According to CoinShares’ weekly report on digital asset fund flows, short-bitcoin investment received inflows totaling $51 million during the past week.
Additional Bitcoin-related products experienced an inflow of $0.6 million. The investment products for digital assets received $64 million in total.
On June 21st, 2022, the ProShares Short Bitcoin Strategy ETF was introduced. The fund tracks wagers made against the price of Bitcoin and travels counterclockwise to the token.
ProShares was the only provider of investment products to receive inflows of $43 million over the past week. With inflows totaling $7.7 million, 21Shares of Europe is far behind in second place.
Increase in shorting interest
After the cryptocurrency experienced its worst performance since 2011 and a 60 percent decline in the second quarter, there has been an increase in interest in shorting it. In recent months, fears of a US recession have been compounded by a wave of cryptocurrency bankruptcy filings.
$46.2 million worth of inflows were recorded each week in the US, primarily in the form of short bitcoin inflows. Other than the US, inflows into long positions on Bitcoin were seen. Together, Brazil, Canada, Germany, and Switzerland received inflows totaling $20 million.
After the EU officially rolled out full crypto regulation, which demands KYC and disclosure practices from exchanges in the region, there may be renewed interest in cryptocurrencies in Europe.
Rise in investor sentiment?
Ethereum witnessed a $5 million weekly influx, marking the second time in a row that the second-largest cryptocurrency has seen a rise in sentiment.
The negative sentiments of the cryptocurrency winter continued to have the least impact on multi-asset investment products. $4.4 million was invested in multi-asset products. In the entire year, these products have only twice seen minor outflows.
As well as Cardano, Solana, and Polkadot saw inflows. This demonstrates investors’ faith in these assets notwithstanding the weak market and their concern that centralised exchange services would be suspended.