December 9, 2022

CoinShares: After FTX default, companies are investing more in short Ethereum positions

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CoinShares: After FTX default, companies are investing more in short Ethereum positions

Analysts at CoinShares reported that the inflow of money into short-term positions in the cryptocurrency market accounted for 75% of the total investment.

Last week, an influx of investment in digitalassets amounted to $44 million, which indicates mixed sentiment among investors, CoinShares experts state. Total assets under management (AuM) are at their lowest level in two years at $22 billion.

CoinShares: After FTX default, companies are investing more in short Ethereum positions

Inflow into short-term investment productswas observed both in the US and in Europe, although there was an outflow for some short-term investment products. Investor opinion is divided as to whether the market has reached its lows.

Bitcoin received a $14 million inflow of fundsbut if we take into account the inflow into short-term investment products, there is an outflow of $4.3 million. AuM on short BTC positions is now $173 million, which is close to the high of $186 million.

CoinShares: After FTX default, companies are investing more in short Ethereum positions

Ethereum experienced a minor outflow of funds ontotaling $0.8 million, although it posted the largest ever inflow into short-term investment products totaling $14 million. This negative sentiment is the result of growing uncertainty about the Shanghai update, which will unlock Ethereum 2.0 staking assets and hacked FTX ETH assets on about $280 million. The outflow of funds was seen in the altcoin markets, primarily Solana, XRP, Binance and Polygon, totaling $6 million.

Recently, CoinGecko analysts reported that the collapse of the FTX exchange caused maximum losses to users from 30 countries.