Short-Bitcoin exchange-traded fund (ETF) recorded the first week of outflows after five consecutive weeks of inflows, according to CoinShares data. The report also showed that digital asset investment products saw inflows of $81 million last week, totaling over $0.53 billion of inflows over the past five weeks.
Short-Bitcoin ETF Stops Seeing Inflows
Digital asset manager CoinShares published a new weekly report on Monday on digital asset fund flows. According to the report, Bitcoin ETFs recorded inflows of $85 million last week, as opposed to the world’s only short-Bitcoin ETF which saw the first week of outflows of $2.6 million for the first time following a 5-week run of inflows. It is the first-ever short-Bitcoin ETF, which traded $35 million worth of Bitcoin a day after its launch in June.
CoinShares data also showed that digital asset investment products recorded $81 million in inflows last week, marking a total of $0.53 billion of inflows over the past five weeks. On a monthly basis, the strongest inflow numbers were seen in July, totaling $474 million, compensating for nearly all June outflows of $481 million.
Based on the region, most of the inflows came from the U.S. and Canada, totaling $15 million and $67 million, respectively. On the other hand, Brazil and Sweden recorded minor outflows.
Surprisingly, multi-asset investment products recorded a second straight week of outflows, totaling $3.7 million over that period. This suggests that investors are making increasingly targeted investments.
Solana’s inflows stood at $1.5 million last week, but the altcoin remains investors’ favorite pick with a total of $114 million of inflows this year. Polkadot inflows totaled $0.4 million last week.
Even though investors have become somewhat more bullish, trading activity remained significantly weak amid the ongoing market drawdown, with a total of $1.3 billion in last week’s volumes. This compares with an average weekly volume of $2.4 billion this year.
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What is a Short-Bitcoin ETF?
ETF provider ProShares launched the first-ever short-Bitcoin ETF in June dubbed “ProShares Short Bitcoin Strategy”. The fund, which debuted under the ticker symbol BITI on the New York Stock Exchange, marks the first fund that allows crypto investors to place bets against the world’s largest cryptocurrency.
Shortly after the launch, BITI accounted for 79% of digital asset funds weekly inflows at the start of July, totaling $64 million of inflows in one week. The clamor for the newly-launched short-Bitcoin ETF came after Bitcoin’s sharp drop of more than 50% year-to-date.
That trend continued throughout last month, with BITI reaching a record of $88 million worth of inflows over just four weeks. Crypto investors have been favoring short-Bitcoin positions over the past few months, however, the new data may suggest that trend is over as investors turn more bullish on crypto.
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
