Bets against BTC saw $10M flow into short-bitcoin funds: CoinShares

Bets against BTC saw $10M flow into short-bitcoin funds: CoinShares

By Benson Toti - min read
  • CoinShares data shows crypto investment products recorded minor outflows of $2 million.
  • But Bitcoin saw a third straight week of outflows totaling $12 million.
  • Short-bitcoin funds saw inflows of $10 million amid negative sentiment driven by US economic data.

Digital asset investment products recorded yet another week outflows this past week as macro data continued to weigh on investor sentiment, according to asset manager CoinShares.

While weekly outflows across crypto-related products was a minor $2 million, the broader market sentiment was negative as indicated by the large inflows into short investment products.

Short-Bitcoin inflows hit $10 million

Investment products tied to the world’s largest cryptocurrency Bitcoin recorded a total of $12 million in outflows last week, a third consecutive week of such action. Investors also bet huge on the price of Bitcoin going down that week, with inflows into short bitcoin funds rising to $10 million.

According to CoinShares, the negative sentiment around BTC price last week largely came from the United States.

Opinions remain polarised though, with the US seeing outflows totalling US$14m, where recent macro data has increased fears amongst investors that the US Federal Reserve (FED) will be more hawkish than expected,” CoinShares head of research James Butterfill wrote.

As we highlighted, the past week was punctuated by the hot economic data (the Producer Consumer Expenditure (CPE) index that suggested inflation was still a key headwind. 

Indeed, the market reacted negatively to the macro data, with Bitcoin price dropping to lows of $22,770 on the Bitstamp crypto exchange. However, BTC is back above $23,400.