Bearish sentiment among institutional investors fades as major players stop shorting Bitcoin: CoinShares
Digital asset manager CoinShares sees signs of bullish sentiment on the horizon among large institutional investors.
In the latest Digital Asset Fund Flows Weekly Report, CoinShares finds evidence of fading bearishness as short Bitcoin (BTC) investment products saw an outflow last week.
“Digital asset investment products saw outflows totaling $5 million last week, although most were from short investment products.”
Short BTC products saw $15 million in outflows last week as traditional BTC products lost $12 million. Short BTC investing aims to borrow Bitcoin to sell on the market before buying it back at a lower price and returning it at a profit.
CoinShares says the Fed’s monetary policy is the likely cause of low volumes across the board.
“Volumes remain historically low as investors await signs that the US Federal Reserve will pull back from its hawkish monetary policy.”
Ethereum (ETH) institutional investment products saw $2.2 million in outflows in the past week, and CoinShares suggests that regulatory concerns following the success of the merger update may be the cause.
“Recent feedback from clients suggests concern about its regulatory status as a security now that it provides a return on investment.”
While multi-asset investment products, or those investing in more than one crypto, took in $1.1 million in inflows, Solana (SOL) and XRP products both saw outflows. Litecoin (LTC) was the only altcoin to top $100,000 last week.
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Featured image: Shutterstock/Tithi Luadthong
