Interest in shorting Bitcoin rose to record levels among institutional investors after the launch of the United States’ first short-bitcoin ETF.
The digital asset fund flows weekly report by CoinShares reveals that short-bitcoin investment products saw inflows worth $51 million through the past week.
Other Bitcoin-linked products saw a small inflow worth $0.6 million. In totality, the digital assets investment products saw inflows worth $64 million.
U.S. traders welcome short exposure to Bitcoin
The ProShares Short Bitcoin Strategy ETF was launched on the 21st of June, 2022. The fund tracks bets against Bitcoin prices, and moves inversely to the token. Of all the investment product providers, ProShares alone received $43 million worth of inflows over the past week. Europe’s 21Shares is a distant second with $7.7 million worth of inflows.
The rising interest in shorting Bitcoin comes after the token plummeted about 60% in the second quarter- its worst performance since 2011. Concerns over a US recession, coupled with a cascade of bankruptcies in the crypto space have hammered Bitcoin prices in recent months.
Analyzing the CoinShares data by region, the US saw weekly inflows of $46.2 million, though it mostly consisted of short-bitcoin inflows. Inflows in long positions on Bitcoin were observed in regions other than the US. Brazil, Canada, Germany and Switzerland combined for $20 million worth of inflows.
Europe may be seeing renewed interest in crypto after the bloc officially rolled out comprehensive crypto regulation, calling for KYC and disclosure practices from exchanges in the region.
Diversification of Assets
Ethereum saw a weekly inflow of $5 million, making it twice in a row when the second-largest cryptocurrency experienced positive sentiments.
Multi-asset investment products remained least affected by the negative sentiments of the crypto winter. Multi-asset products saw inflows of $4.4 million. These products have experienced minor outflows only twice in the entire year.
Solana, Polkadot and Cardano experienced inflows as well. This displays the confidence of investors in these products despite the bear market and the fear of suspension of services by centralized exchanges.
The post Institutional Traders Are Shorting Bitcoin At Record Pace, Here’s Why appeared first on CoinGape.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks