Back to the list

CoinShares: Cryptoassets See $64 Million in Inflows, as Investors Take Advantage of the Dip


btcmanager.com 05 July 2022 18:00, UTC
Reading time: ~3 m

CoinShares has revealed via the latest edition of its Digital Asset Fund Flows Report released on July 4, 2022, that investors pumped in a total of $64 million into digital asset investment products last week, with over $51 million of that figure going into short-bitcoin (BTC) investment products. 

Digital Asset Inflows 

Bitcoin’s (BTC) recent dip below the psychological $20k price level has left many investors thinking the price of the orange coin may witness further significant crashes during this bear market. 

According to the latest edition of CoinShares’ Digital Asset Fund Flows Report, out of the total $64 million pumped into crypto investment products between June 27, and July 1, 2022, a large chunk of that figure ($51 million) went into investment products that enable investors to short bitcoin (BTC) in the United States.

In the same vein, $20 million in inflows was received by crypto investment products in regions other than the U.S., including Brazil, Canada, Germany, and Switzerland. The researchers attributed this inflow to investors looking to take advantage of the dip to add to their previous long positions. 

It will be recalled that ProShares’ rolled out the first U.S. short bitcoin-linked exchange-traded fund (ETF) on June 21. Dubbed BITI, the firm says the investment product makes it possible for investors to profit from a decline in the bitcoin (BTC) price. 

“BITI affords investors who believe that the price of bitcoin will drop an opportunity to potentially profit or to hedge their crypto holdings. BITI enables investors to conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account,” explained Proshares at the time.

CoinShares analysts believe that the significant inflows into short-bitcoin are possibly due to the newly launched BITI product rather than ‘renewed negative sentiment.’ 

Altcoins See Inflows 

Also, investment products offering exposure to ether (ETH), the world’s second-largest cryptocurrency by market capitalization, attracted a total of $5 million in inflows in the same period, bringing its 11-week spell of withdrawals to an end. However, ETH funds are still down with just over $450 million in outflows year-to-date. 

What’s more, the report notes that multi-asset investment products attracted inflows totaling $4.4 million, with just minor outflows year-to-date, making it the digital asset fund least affected by the recent negative market sentiment. 

That’s not all, established altcoins, including solana (SOL), polkadot (DOT), and cardano (ADA) also attracted inflows of $1 million, $700,000, and $600,000  respectively.

With the latest short-bitcoin inflows,  short BTC funds have now seen two consecutive weeks of large inflows, a strong indication that investors still see the price of bitcoin going way below its current $19k price region.

In related news, in the latest edition of Glassnode’s the Week Onchain Newsletter titled “The Expulsion of Bitcoin Tourists,” researchers at the blockchain analytics firm revealed that bitcoin’s poor performance so far this year has wiped out all the weak hands that invested in it, “leaving the resolve of HODLers as the last line standing.”

Back to the list