Short Bitcoin Funds Experience Greatest Ever Outflow of $23.1 Million Last Week
Digital asset funds have been experiencing outflows for three consecutive weeks now, according to the Digital Asset Fund Flows Weekly Report by CoinShares. Last week, the report revealed that funds withdrew from digital asset funds, with short bitcoin funds recording the largest outflow of funds ever.
The report showed a net outflow of $53.7 million from all crypto funds in the week prior to May 5th. Bitcoin funds recorded net outflows of $31.8 million, while Ethereum funds saw a net outflow of $2.3 million.
However, what’s interesting to note is that the short bitcoin fund, which bets on the decline of bitcoin, recorded a record high of $23.1 million in net outflow. This means that investors are anticipating a fall in the value of bitcoin and are betting on it.
This comes amidst a negative trend in the overall market mood, as digital assets have been experiencing significant price drops in recent weeks. This could be attributed to a number of factors, such as regulatory concerns, environmental issues surrounding the energy consumption of mining digital assets, and more.
Despite this negative trend, some altcoins continue to attract investment. The Solana Fund, for instance, saw inflows of $3.4 million, while other altcoin funds remained relatively unchanged.
This report is significant in that it shows that investors are beginning to shift their strategies amidst the changing market conditions. It also suggests that there is still a strong interest in digital assets, but investors are being more selective and cautious in their investments.
As the digital asset market continues to evolve, it will be interesting to see how investors adapt and whether this trend of outflows from bitcoin and ethereum funds, as well as inflows into altcoin funds, will continue.
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