Bitcoin Shorts Dominate Weekly US Crypto Fund Inflows: CoinShares

[ad_1]

Although inflows into crypto products hit $37.3 million last week, more than two-thirds of that amount (68%) was in short-term investment products, the investment firm said Monday. CoinShares digital assets in a new report. Compared to the previous week, total entries for the past week are almost four times higher.

Germany and Switzerland led inflows to Europe ($14m and $10m, respectively), while Hong Kong, on the other hand, recorded outflows of long investment products to the tune of $11m of dollars.

US investors were the most skeptical, however, with 95% of US inflows moving into short Bitcoin products.

CoinShares weekly reports cover investment inflows and outflows in popular ETPs, mutual funds and over-the-counter (OTC) trusts referencing Bitcoin (BTC), Ethereum (ETH) and others altcoins. It is important to note that these are not direct investments in the cryptocurrencies that these products represent.

Last week, trading volume for crypto investment products also reached $1.6 billion, which is above the 90-day average of $990 million, with total assets under management reaching $29 billion, the highest since September of last year.

However, the devil is in the details, as the narrative is dominated by BTC short inflows ($25.5 million), nearly five times the inflow of BTC longs, which was only $5.7 million. dollars.

This represents the largest weekly inflow of short products since July 2022 ($51 million), the report continues.

Such an image is very much in line with the division of opinion within the crypto investing community.

Investors are divided on whether the recent uptrend in markets, which saw Bitcoin briefly surge above $23,000 over the weekend, is just the start of a new bull run, or is a so-called bullish trap.

Stay up to date with crypto news, get daily updates in your inbox.

[ad_2]