Bitcoin [BTC]: Short products for the win as investors shy away from long positions
In a new report , digital asset investment firm CoinShares found that ongoing apprehension among investors regarding the uncertain regulatory landscape of crypto-assets led to a fourth consecutive week of outflows for Bitcoin [BTC]. This, as investors rallied around short investment products instead.
The value of BTC sharply declined in the early trading hours of 3 March, causing investor confidence in the coin’s short-term price rally to drop even further due to the uncertainty around Silvergate Capital. This event contributed to long liquidations soaring to a seven-month high, data from Coinglass revealed. According to CoinShares,
“The poor sentiment likely represents continued investor concerns over regulatory uncertainty for the asset class.”
Source: CoinShares
According to CoinShares, last week, investors funnelled funds into Short-Bitcoin products. As a result, Short-Bitcoin saw inflows of $1.8 million. On a year-to-date basis, Short-Bitcoin products have logged inflows of $50 million.
Interestingly, despite the recent inflows into Short-Bitcoin, the value of its total assets under management (AuM) has only risen by 4.2% TYD. This starkly contrasted with Long-Bitcoin AuM, which has hiked by 36%.
Citing concerns over regulatory uncertainty for the asset class, CoinShares added that the discrepancy in performance suggested that short positions are yet to deliver the returns that some investors are expecting.
Source: CoinShares
For its part, Bitcoin logged its fourth consecutive week of outflows totaling $20 million. Due to the coin’s impressive performance towards the beginning of the year, its YTD inflows stood at $126 million.
While the entire investment products market suffered low volumes due to outflows
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