Institutional interest in shorting Bitcoin rises to record levels in the US (Report)

Exposure to shorting the price of Bitcoin saw a record entry of 51 million dollars last week when the asset crumbled below 20,000 dollars, a new report showed.

Shorting dominates in the United States

According to the latest CoinShares weekly ‘Digital Asset Fund Flows’ report, a total of $ 64 million was observed in the supply of investment products for digital assets between June 27 and July 1, and a large portion of 80% went to shorting Bitcoin. investment products. .

The interest in shorting comes as Bitcoin had the worst quarterly result in a decade. A gloomy macro forecast, threatening recession fears and high-profile crypto firms struggling with the impact of sales have all contributed to the bearish sentiment.

As a result, the United States accounted for $ 46.2 million in inflows. The recently launched ProShares Short Bitcoin Strategy ETF, a fund that tracks games against the price of Bitcoin alone, uploaded more than $ 43 million in inflows last week.

CoinShares noted that the availability of ProShares’ BITI, which offers shorting exposure via futures contracts for investors considering a bet against Bitcoin, had driven the current figures.

“This highlights that investors are adding long positions to current prices, with the inflow to short-Bitcoin possibly due to first-time availability in the US instead of renewed negative sentiment.”

Apart from the United States, long-term inflows of Bitcoin were seen in Brazil, Canada, Germany and Switzerland, amounting to $ 20 million.

The increase in short Bitcoin funds comes a week after CoinShares reported the largest exit of digital asset products ever, reaching an astonishing record high of $ 423 million. Bitcoin products so net outflows worth $ 453 million during this time.

Diversification has begun

Investors are also beginning to diversify as the inflows of several altcoins such as Solana, Polkadot and Cardanos amounted to $ 1 million, $ 0.7 million and $ 0.6 million, respectively. Ethereum also managed to finally break the 11 weeks of outflows by snapping up $ 5 million in inflows in the last week.

Furthermore, investment products with several assets managed to flow relatively smoothly despite the crypto-blood in the weeks before. The report suggested that this group of products was least affected by the negative sentiments from the crypto winter and saw inflows worth 4.4 million dollars while the registered smaller outflows only two weeks this year.