Bearish sentiments toward Bitcoin have grown among institutional investors in recent months. This was accelerated by the crash that shook the digital asset market in mid-June. Since then, bitcoin has battled to stay above the R333K mark, and as it has done so, bearish sentiment has grown rampant. This is evidenced by the short bitcoin inflows witnessed last week.
According to the most recent CoinShares study, institutional investors are only investing in bitcoin for the short term, and they predict the digital asset will continue to decrease. It demonstrates that inflows into short bitcoin ETFs have reached their highest level since inception, with R851 million for the previous week. The ProShares short BTC ETF is the most recent in this category, and while it had had considerable inflows in the previous week, it was put down to the fact that the ETF had only recently launched. Last week, though, provided context for how institutional investors would perceive bitcoin in the future.
To put this in context, whereas short bitcoin received R851 million in inflows over the seven-day period, bitcoin received only R10 million. The digital asset has narrowly avoided another week of outflows by achieving one of the lowest inflows ever recorded.
In comparison to the previous week’s inflows of R250 million, the inflow into short bitcoin had increased by 240 %. It is one of the clearest evidence that institutional investors do not expect bitcoin’s price to improve anytime soon.
These institutional investors’ unfavourable view of bitcoin has been limited to bitcoin alone. According to the CoinShares report, altcoins have enjoyed steady inflows. After nearly three months of outflows, Ethereum saw its second consecutive week of inflows, totalling R83 million.
Other altcoins, including Solana, Polkadot, and Cardano, which compete with Ethereum, also had inflows. For the previous week, their statistics were R16.6 million, R11.6 million, and R10 million, respectively. This shows that institutional investors believe these assets will outperform bitcoin in the future.
Multi-asset investment products were not overlooked. A total of R73 million was invested in them, and they have maintained their position even during the bear market, with only two weeks of inflows recorded in the last six months.
One thing to note is that bearish sentiment appears to be more prevalent among institutional investors in the United States. Other regions had seen higher inflows into long-term investment products, totalling R33.5 million for the week.
According to the study, this could be because short bitcoin ETFs became available in the US for the first time. As a result, investors are scrambling to take advantage of the new fund.