Inflows into crypto investment products have reached $1,8 billion in 11 weeks

What’s new? The inflow of funds into cryptocurrency derivatives has been maintained for the 11th week in a row, but at the same time, the figure from December 4 to 10 fell by 76% compared to the results of the previous week, amounting to $43 million. In addition, the crypto market rally has also led to a significant influx of funds into short positions as some investors see the potential for lower prices, analysts at investment firm CoinShares write in a new report.

CoinShares’ report

What else is known? Total inflows into crypto investment products have reached $1,8 billion in 11 weeks. Last week, Europe maintained its lead in inflows with $43 million. In the United States, the inflow amounted to only $14 million, with half of it coming from short positions. Hong Kong saw an outflow of $8 million for the second week, while Brazil saw an outflow of $4,6 million.

Bitcoin remains the most popular asset among investors: in long positions for the week recorded an inflow of $20 million, and in short positions $8,6 million. Analysts explain this by the fact that some market participants consider the current price growth unsustainable. Since the beginning of the year, $1,7 billion has been invested in products based on the first cryptocurrency.

In CoinShares, the native tokens of the Solana (SOL) and Avalanche (AVAX) blockchains were called “firm favourites in the altcoin space.” assets for the week showed inflows of $3 and $2 million, respectively.

As for Ethereum, back on October 22, the total YTD outflow for products based on the largest altcoin was $125 million, but investors have since begun to show renewed interest in the asset. Now the inflow into ETH products has been maintained for the sixth week in a row with a figure of $19 million.

In addition, a record $126 million was invested in the shares of cryptocurrency companies last week.

Thus, on December 5, analysts at S3 Partners reported that unrealized losses of short position holders in shares of crypto firms, such as the exchange Coinbase, analytical software developer MicroStrategy, and miner Marathon Digital, have exceeded $6 billion since the beginning of the year. Shorts built up positions in September as BTC fell to a quarterly low (it has since added about 70%). COIN, MSTR, and MARA stocks are up 301% or more since the beginning of the year.