Crypto investors across institutions have hit back at negative commentary linked to the collapse of FTX, indicating record levels of inflows from short-investment crypto products.
CoinShares chief strategy officer James Butterfill said that 75 percent of inflows from institutional cryptocurrency investors last week were short investments on the decline of crypto prices.
Deeply negative sentiment in crypto assets with the largest inflows into short-investments on recordhttps://t.co/zW0ZfGZDTo
— James Butterfill (@jbutterfill) November 21, 2022
He stated the bets were potentially “a direct result of the ongoing fallout from the FTX collapse,” adding total assets under management (AUM) from institutional investors stood at $22 billion.
Investment products on Ether reached $14 million, the “largest weekly inflow on record,” according to Coinshares. The company speculates that “renewed uncertainty” on Ethereum’s Shanghai upgrade along with massive amounts of the currency on the FTX exploiter were potential causes for negative outlooks.
Short investment product inflows for Bitcoin (BTC) also reached $18.4 million with a reported AUM of roughly from $173 million to $186 million.
FTX, Crypto Fire Sale?
The findings show a small increase from the previous week, which saw 14-week highs from crypto products reaching $42 million. Bitcoin short products also reached inflows of $12.6 million, reports found.
Numerous exchanges have also been hit by investors taking their holdings offline to self-custody exchanges. Coinbase, one of the world’s largest exchanges, recorded its lowest share prices in history on Monday, dropping 8.9 percent or $41 per share, MarketWatch data revealed.
The number of #Bitcoin held on exchange have fallen 27% from their 2020 peak and 11% this year. Are people losing trust in centralised exchanges? Quite possibly.. pic.twitter.com/0WY3NIIDxe
— James Butterfill (@jbutterfill) November 14, 2022
Its stocks have plummeted roughly 88 percent after the firm publically traded shares on 16 April last year.
Cryptocurrencies have also suffered from the ongoing fallout from FTX, with Bitcoin (BTC) nosediving 4 percent to roughly $15.725.02, CoinGecko data showed. Ether also tumbled 8 percent to $1,081.56.
