Institutional investors have halted their short positions on Bitcoin, as reported in CoinShares’ latest fund update. This marks the first time in fourteen weeks that outflows into short Bitcoin products have stopped, signaling a shift in approach by major digital asset funds.
CoinShares’ report indicates a substantial weekly sell-off, the largest since increased regulatory scrutiny by the U.S. The authorities began impacting the industry. Despite the pause in shorting, investors have divested over $111 million from various Bitcoin-related funds in the past week.
Altcoins Experience Mixed Impact:
While Bitcoin and Ethereum face selling pressure, certain altcoins are benefiting. Solana, notably, has garnered substantial institutional interest with $9.5 million in inflows, marking its most bullish week since March 2022. Ripple (XRP) and Litecoin (LTC) also experienced positive weeks, though with less institutional investment.
Canadian and German funds led last week’s selling, with outflows totaling over $70 million and $28 million, respectively. These movements align with the industry’s ongoing legal challenges and regulatory uncertainties.
Pause Amidst Industry Challenges:
As the digital asset sector grapples with lawsuits against major platforms like Coinbase and Binance, along with regulatory actions, institutional investors have chosen to temporarily halt shorting Bitcoin. The industry’s response to these challenges continues to shape its dynamics and investment strategies.