Investors record surge in bets on bearish Bitcoin funds

Inflow to cryptocurrency investment products from 12 to 18 November totaled $43.7 million, versus $42 million a week earlier. Analysts at CoinShares attributed the figures.

As a result of the deteriorating environment, the total value of digital assets under management by firms fell to a two-year low of $22.25 billion.

In traditional Bitcoin funds there was an inflow of $14 million compared with $19 million a week earlier. Structures that allow shorting the first cryptocurrency attracted $18.4 million (in the previous reporting period — $12.6 million).

Outflows from Ethereum funds amounted to $0.8 million versus inflows of $2.5 million a week earlier. The structures enabling shorting the second-largest cryptocurrency attracted a record $14 million. Analysts linked this to unauthorized withdrawals of assets predominantly in ETH from accounts on FTX.

«The inflow into ‘short’ products amounted to 75% of the total. This indicates deeply negative sentiment, which is likely a reflection of the consequences of the FTX collapse», — as stated in the report.

Among altcoins (excluding Ethereum) overall withdrawals totalled $6 million. Basket-based products attracted $2.8 million.

As of November 17, unrealized losses for the ‘average’ long-term Bitcoin investor reached 33%, according to Glassnode. This reading on the MVRV indicator corresponds to the bear market of 2018 before its end.

Earlier, analysts noted a rise in balances across all market participants—from ‘shrimp’ (less than 1 BTC) to whales (more than 1000 BTC). They linked this to a loss of trust among Bitcoin investors in centralized platforms.

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