- Since the introduction of the ProShares Short Bitcoin ETF, it has enjoyed great popularity, especially among institutional investors.
- Ethereum’s investment products have also corrected their position over the past two weeks as there was a massive outflow earlier in the year.
Bitcoin remains unchanged at around $20,000. The selling pressure has been particularly noticeable over the past week as the price has stayed around 19,000 for most of the time.
A new CoinShares report titled Digital Asset Fund Flow indicated that there was a $64 million inflow into digital investment products during the week of June 27-July 1. Of that, 80 percent, or $51.4 million, is accounted for by smaller bitcoin products.
US investors accounted for the largest share with 46.2 million US dollars. Short BTC investment products were in high demand after ProShares launched its first short Bitcoin Exchange Traded Fund (ETF) on June 22. The ProShares Short Bitcoin ETF trades under BITI. It offers bitcoin short exposure through futures contracts. CoinShares noted in its report:
“This suggests that at current prices, investors are adding to their long positions, with an influx of short bitcoins possibly indicating a first-time entry into the US rather than renewed negative sentiment.”
According to the report, institutional investors from Brazil, Canada, Germany and Switzerland have invested a total of $20 million in crypto investment products. Sweden, on the other hand, cut that figure again by about 10 percent, with a net outflow of $1.8 million.
Short Bitcoin (BTC) inflows have topped $77.2 million so far in 2022. That number trails only multi-asset products with inflows of $213.5 million and short solana products with inflows of $110.3 million.
cryptocurrency flow
Over the past week, crypto asset products that offer exposure to Ethereum (ETH) saw a net inflow of $4.9 million. This was the second straight week of inflows for Ethereum products after 11 straight weeks of outflows. Over the past week, Ethereum has surged above $1,200.
However, year-over-year, Ethereum investment products saw a net outflow of $450.9 million. Last weekend, Ethereum came under selling pressure again and the price dropped to $1,000. It is currently trading at $1,156 and has a market cap of $141 billion.
However, this could be just another dead stone’s throw for ETH as the current price hike has no catalyst to push it further. Global macroeconomic conditions remain uncertain. Inflation is likely to be higher in June than in May and the risk of the US slipping into recession is increasing – and then it will only be a matter of time before Europe follows suit.
Another worrying sign for Ethereum is on-chain metrics. ETH supply on exchanges has hit its highest level in six months, according to on-chain data provider Sentient. feeling says:
“Ethereum is valued at around $1,120 on America’s birthday. Nonetheless, $ETH continues to make rapid moves back to exchanges and is on the verge of reaching a 2022 top. However, as coins increase on exchange wallets, the risk of selling is high.
On the other hand, the CoinShares report notes:
“Multi-asset investment products saw inflows totaling $4.4 million and were the least affected by recent negative sentiment this year, with modest outflows in just two weeks.”
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