Institutional investors pour the most into short Bitcoin products of last week’s inflows

Institutional investors loaded up last week on a record $51.4 million worth of investment products offering exposure to shorting the price of Bitcoin (BTC). By recovering from $423 million in outflows the week prior, digital assets investment products managed to pull $64 million in inflows, while ETH products generated the next highest figure at just $4.9 million.

Over the last week, digital assets and crypto investment products managed to pull $64 million in inflows while the crypto market continues to regain its footing.

According to the new CoinShares report, last week’s crypto inflows were mostly made up of short-bitcoin investment products, despite recovering from $423 million in outflows a week before.

Meantime, small inflows were also moving into long investment products in regions besides the United States, while inflows into countries such as Brazil, Canada, Germany, and Switzerland amounted to $20 million. “This highlights investors are adding to long positions at current prices,” the report said.

Short-Bitcoin investment products saw a record $51 million in inflows over this week, probably due to their becoming first available in the US. While Bitcoin, which usually takes the lion’s share of flows for any given week, had a negligible $600,000, albeit in inflows.

A week before, the record amount of outflows was largely due to Bitcoin-based products, which saw net outflows for the week amounting to $453 million. This had erased almost all inflows year-to-date and left total Bitcoin AuM at $24.5 billion, the lowest point since the beginning of 2021. Last week’s report also found that the outflows were likely responsible for bitcoin’s decline to $17,760. Noteworthy, Ethereum finally made a breakthrough, hitting $11 million in inflows following an 11-week streak of outflows.

Further, Ethereum-based products continued that positive streak over the past week, with the second week of inflows totaling $5 million, although year-to-date outflows remain at an overwhelming $433 million.

Other altcoins also saw inflows suggesting that investors are beginning to diversify again. Solana, Polkadot, and Cardano saw inflows of $1 million, $700,000, and $600,000, respectively.

Least affected by the recent negative sentiment, multi-asset (multi-crypto) investment products saw inflows totaling $4.4 million. Notably, these products only experienced minor outflows during two weeks so far this year.

As reported before, an investment product provider ProShares announced two weeks ago the launch of the US first short Bitcoin exchange-traded fund (ETF) that would allow investors to bet on Bitcoin’s decline. The product has launched on June 28 under the ticker BITI.