Major bitcoin investors are nervous: New data

The asset manager CoinShares has published yet another update on the inflows and outflows of major crypto investment funds. What was striking last week was that capital has once again flown out of bitcoin funds, while bitcoin short funds have seen a considerable inflow. This shows “nervousness among US investors,” CoinShares said in the update.

Bitcoin sees outflows for 3rd week in a row

The new data shows that $11.7 million flowed out of bitcoin funds last week. Through these funds, institutional investors can gain exposure to crypto without having to take custody of the underlying assets themselves. It is the third week in a row that these funds have seen an empty flow.

It should be noted, however, that this is not a huge outflow. In total, $ 16.8 million has flowed out since the beginning of February (including the new figures). Since the beginning of 2023, $ 146 million has flowed in. There is therefore certainly no talk of a general capitulation.

Bitcoin shorts attract capital

What stood out, however, was that $9.9 million in capital poured into the major bitcoin short funds last week. These types of funds allow investors to speculate on a possible fall in the share price. According to CoinShares analysts, this negative sentiment is especially prevalent among US investors:

“We believe this reaction reflects nervousness among US investors following the recent stronger-than-expected release of macro data, but also highlights sensitivity to the US regulatory environment.”

This probably refers to the recent actions of the Securities and Exchange Commission (SEC). The regulator went after stablecoin publisher Paxos, the publisher of Binance USD (BUSD), among others.

The ethereum funds took little notice of this negative sentiment. Only $200,000 flowed out there. Solana (SOL), polygon (MATIC) and cardano (ADA) received a small amount, namely 0.6, 0.5 and 0.4 million dollars respectively.

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