Short Bitcoin ETFs Take a Hit With $1.9M in Outflows: Are Bears Losing Their Grip?

Investment in digital asset products continued to rise, with inflows reaching $1.35 billion last week, totaling $3.2 billion over the past three weeks.

Trading volumes for Exchange Traded Products (ETPs) also saw a significant increase, up 45% week-over-week to $12.9 billion. However, this accounted for a lower-than-usual 22% of the overall crypto market volumes.

Bitcoin Sees Inflows Amid Strong Market Sentiment

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin experienced $1.27 billion in inflows last week.

In contrast, short-bitcoin ETPs saw additional outflows of $1.9 million, dragging outflows since March to $44 million. Such a trend suggests investors are less worried about bitcoin’s price trajectory and appear to be moving away from bearish bets on the crypto asset.

Since March, total outflows have reached $44 million, equating to a significant 56% of assets under management (AuM). The asset manager said that this highlighted the continued positive sentiment since the halving event in April.

The past week also saw an improved outlook for Ethereum, with $45 million in inflows during the period, making it the altcoin with the highest year-to-date (YTD) inflows at $103 million, surpassing Solana. The report revealed that SOL also had inflows of $9.6 million last week but now trails ETH with $71 million in terms of YTD inflows. Litecoin was the only other altcoin to see inflows over $1 million, with $2.2 million last week.

Additionally, Chainlink recorded $0.7 million in inflows, followed by XRP with $0.5 million and Cardano with $0.4 million, respectively.

On the other hand, blockchain equities continue to struggle, experiencing outflows of $8.5 million last week despite most ETFs outperforming global equity indices.

Regional Investment Trends

The regional investment picture was more diverse when compared to last week. The US and Switzerland topped the chart with notable inflows of $1.3 billion and $66 million, respectively, while Canada and Australia followed suit with $7.8 million and $3.8 million in inflows.

Meanwhile, Germany led in outflows with $5.2 million, while Hong Kong and Brazil saw minor outflows totaling $1.9 million and $1.7 million, respectively. Sweden, too, recorded minimal outflows of $0.6 million during the same time.