HomeBitcoinInstitutional Investors Short Crypto Markets as Macro Data Sparks Nervous Sentiment: CoinShares

Institutional Investors Short Crypto Markets as Macro Data Sparks Nervous Sentiment: CoinShares


Digital asset manager CoinShares says investors heavily shorted institutional crypto investment products last week.

In its latest Weekly Digital Asset Fund Flow Report, CoinShares finds that institutional digital asset investment products saw minor outflows last week, in contrast to major inflows in short investment products.

“Investment products in digital assets registered minor outflows totaling US$2 million. Although this masks broader negative sentiment, as the largest inflows were in short-term investment products.”

Source: CoinShares

Bitcoin (BTC) products took the biggest hit from the outflows with $11.7 million. Meanwhile, Bitcoin short products enjoyed strong inflows of $9.9 million. Short BTC products have enjoyed the second highest inflows of the year to date, around $48 million versus Bitcoin’s $146 million.

Coinshares says it has a potential reason why institutional investors rushed to buy short BTC products last week.

“Bitcoin saw outflows for the third week in a row totaling $12 million, while bitcoin short saw inflows totaling $10 million, although this negative sentiment came solely from the US. We believe this reaction reflects the jitters among US investors sparked by recent stronger-than-expected macroeconomic data releases, but also highlights their sensitivity to regulatory crackdowns in the US.”

Altcoins were a mix of ins and outs. While the institutional investment products Cardano (ADA), Solana (SOL) and Polygon (MATIC) registered inflows of $0.4, $0.5 and $0.6 million, Ethereum (ETH), Litecoin (LTC) and investment vehicles multi-asset investing suffered outflows.

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