Short bitcoin has been at the forefront of investors’ attention over the last few months. The asset allocation has been impressive since the launch of short bitcoin and it is not slowing down. It isn’t surprising, considering the market was experiencing another bear run. Last week however, short Bitcoin investors moved in the opposite direction. Outflows have replaced inflows.
Bitcoin Investors Begin Profit-Taking
Investors are increasingly looking for outflows to short bitcoin, according to the weekly CoinShares Digital Asset Fund Fund flows report. Short bitcoin has been experiencing consecutive inflows for the last 7 weeks as the value of this digital asset fell. It seems these short-term investors now enjoy the fruits of their labor as they start taking out money.
The short Bitcoin outflows totaled $5.1million for the first-time in over two months. The total assets under management (AuM), for short BTC, remains at an all-time high of $172 million. This is a record for digital asset. Even though there has been an increase in investors withdrawing money, this only indicates that profit-taking is taking place and does not indicate a change of sentiment towards the investment vehicle.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Long bitcoin saw only minor inflows. This is in keeping with increased short BTC interest. It is clear that institutional investors still remain cautious when it comes digital assets. Inflows reached $0.1million in the last 7 days. Bitcoin’s total AuM has now dropped to a new 3-month low of $15.9 billion.
Inflows to Other Areas
Outflows seem to have been confined to bitcoin only when it comes to short-term transactions. Inflows were also seen in other digital assets like Ethereum. This digital asset is second in market capital and has been attracting a lot of attention due to completion of Merge which saw inflows totaling $7.7million for the week. But, the sentiment didn’t seem all that bullish considering that Short Ethereum had just received $1.1million in inflows.
Some altcoins saw small inflows over this time. Assets like XRP, Cosmos, and XRP received some attention from institutional investors. Inflows reached $0.4 and $0.5 millions, respectively, over this one-week period. Inflows to multi-asset products also reached $1.8million during that time frame.
A majority of inflows came from Europe. This was $15 million. North America displayed a more bearish mood than the rest of Europe. These outflows reached $9.4 millions in this area.
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