Last week, crypto investors spent a significant amount of their funds betting against digital asset price increases.
The CoinShares weekly report revealed that $8.6 million was directed into Short Bitcoin investment products, representing 20% of the total crypto inflow for the previous week.
James Butterfill, an analyst with the asset manager, explained that the inflows into the short positions indicated some investors believe that the ongoing price surges might not be sustainable.
“Recent price appreciation has also led to significant inflows into short positions as some investors see price downside potential,” Butterfill wrote.
During the past day, Bitcoin and other digital assets recorded a significant market correction that resulted in $400 million in losses for crypto traders.
Crypto ETPs see 11 weeks of inflow.
Despite bets against the upward movement of the crypto market, inflows into crypto investments continued for 11 consecutive weeks, totaling $43 million for the previous week.
As per the report, interest in Bitcoin remained strong. Investment products related to the pioneering asset received nearly half the total inflows at $20 million, contributing to a year-to-date inflow of $1.7 billion.
Additionally, Ethereum witnessed its sixth consecutive week of inflows, amounting to approximately $10 million. This trend of inflows into Ether products represents a reversal of fortune for the digital asset, which witnessed seven consecutive weeks of outflow totaling $125 million.
Meanwhile, the total net inflow into Ethereum stood at $19 million on the year-to-date metric.
Other digital assets like Solana and Avalanche saw inflows totaling $3 million and $2 million, respectively.
From a regional perspective, Europe led in inflows, contributing $43 million. In contrast, the United States contributed only $14 million, with approximately $8 million directed toward short positions. Hong Kong recorded its second consecutive week of outflows in Asia, totaling $8 million, while Brazil saw a modest inflow of only $4.6 million.
It’s important to note that the decrease in inflows witnessed last week reflects the current mixed sentiments among investors. Despite the recent price rally, investors have expressed concerns that the upward trend may not be sustainable.
