Digital asset investment products recorded the fourth week of consecutive inflows last week. There has been a significant increase in short bitcoin investment, indicating that a significant number of investors remain uncertain about the future trajectory of the market.

Inflows into digital asset investment products totaled $76 million last week, marking the fourth consecutive week of inflows at $230 million, CoinShares found in a report dated Feb. 6.

Last week’s inflows represented a 35% drop from the $117 million in inflows recorded last week.

Source: Coinshares

Coinshares noted that the consistent increase in digital asset inflows marked a clear shift in investor sentiment for the start of 2023. It said:

“Digital asset investment products saw inflows totaling US$76 million last week, the 4th consecutive week of inflows with year-to-date inflows now at US$230 million, marking a decisive shift in investor sentiment for the start of 2023 emphasizes.”

“Put your money where your mouth is,” says Bitcoin

According to Coinshares, investors focused their attention mainly on Bitcoin [BTC] during the week, with inflows totaling $69 million. This accounted for 90% of the total inflow recorded last week.

Coinshares found that significant holdings in BTC were seen primarily in the US, Canada, and Germany, with inflows of $38 million, $25 million, and $24 million, respectively.

While BTC remained the primary focus, inflows into short Bitcoin reached $8.2 million during the same period. Coinshares believed this meant the market remained uncertain about a continued rise in the price of BTC.

“The remainder of the inflow came from short Bitcoin, which totaled US$8.2 million over the same period, highlighting that opinions remain divided on the sustainability of this rally.”

Despite being relatively small compared to long Bitcoin inflows, short Bitcoin inflows have surged to $38 million over the past three weeks and comprised 26% of total assets under management. Nevertheless, short Bitcoin trading has been unsuccessful so far, with total short Bitcoin assets under management dropping 9.2%.

Source: Coinshares

The altcoins have done their part

Per Coinshares, Ethereum [ETH] saw just $700,000 in inflows last week, despite the improved clarity around making previously staked ETH coins available with the planned Shanghai upgrade.

Other altcoins, such as Solana [SOL]Cardano [ADA]and Polygon [MATIC]also saw small inflows of $500,000, $600,000 and $300,000 respectively.

Source: Coinshares

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