Institutional investors remain bearish as Short Bitcoin sees record highs

Bearish sentiment against Bitcoin among institutional investors has gained ground in recent months. This was further driven by the crash that shook the digital resource back in mid-June. Since then, bitcoin has struggled to keep its head above the $ 20,000 level, and as it continues to fail, bearish sentiment has grown. This is evident in the short bitcoin feeds that were recorded last week.

Record numbers for short Bitcoin

The latest CoinShares report has shown that institutional investors only invest in bitcoin in the short term, and moreover, they believe that the digital asset is set to decline more. It shows that the supply of the short bitcoin ETFs had reached its highest point since the start with 51 million dollars for the week before.

Related reading | Assembly of support for Bitcoin to $ 19,000 as market leader in a new week

ProShares short BTC ETF is the latest in a series of these types, and although it had had significant inflows in the previous week, it was signed that the ETF had just launched. But last week has put into perspective how institutional investors view bitcoin going forward.

To put this in perspective, while inflows for short bitcoin had reached $ 51 million for the 7-day period, bitcoin had only registered $ 0.6 million in inflows. The digital asset had just missed registering another week of outflows with one of the lowest inflows ever recorded.

BTC falls to $19,500 | Source: BTCUSD on TradingView.com

Compared to last week’s inflow of $ 15 million, the inflow of short bitcoin had grown by a total of 240%. This is one of the most obvious indicators that institutional investors do not expect the price of bitcoin to recover anytime soon.

Institutional investors in Altcoins

The bearish sentiment on bitcoin from these institutional investors has been referred to bitcoin only. The CoinShares report shows that altcoins had continued to flow in. Ethereum, which had suffered nearly three months of outflows, had registered its second week in a row with inflows totaling $ 5 million.

Other altcoins such as Solana, Polkadot and Cardano, all competitors of Ethereum, also registered inflows. Their numbers came out to $ 1 million, $ 0.7 million and $ 0.6 million, respectively, last week. This indicates that institutional investors predict a better future for these assets compared to bitcoin.

Related reading | Active Ethereum addresses Touch 2020 levels, will the price follow?

The multi-asset investment products were not omitted. A total of $ 4.4 million flowed into them, and it has continued to hold its own even through the bear market, with only 2 weeks of inflow recorded in six months.

One remarkable thing is that the bearish sentiment seems to be more prominent among institutional investors in the United States. Other regions had registered better inflows in long-term investment products that had reached $ 20 million for the week.

The report notes that this may be due to the fact that short bitcoin ETFs had become available in the US for the first time. Therefore, investors are in a hurry to take advantage of the new fund.

Featured image from BTCC, chart from TradingView.com

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