By George Ward
In the aftermath of the failure of the FTX exchange, research from CoinShares reveals that corporate investors are wagering against cryptocurrencies. In addition, several investors are betting on the price of cryptos, including Bitcoin, to go down.
Earlier this week, CoinShares, an on-chain analytics platform, announced that institutional investors are going against the crypto market. Instead, they are betting on major cryptocurrencies like BTC and ETH to drop prices.
The report added that Short product inflows accounted for 75% of all inflows. Short products make it possible for investors to speculate against cryptocurrencies.
Thus, proving that these large-scale investors are betting on an asset’s price to go down. Last week, investors predicted that the price of cryptocurrencies, like BTC and ETH, would continue their downward trend.
According to CoinShares, the total value of digital assets managed by financial institutions has hit a new low in the past years. The new low of $22 billion implies that average sentiment was significantly unfavorable for crypto assets.
The report added that investors poured funds into short-term ETH investment products last week. The funds, which amounted to about $14 million, is the highest in a long time.
Meanwhile, CoinShares speculated that the latest FTX saga might have a hand in the increased interest in short products. There are also reports that more crypto firms are on the brink of bankruptcy.
Additionally, the CoinShares report said investors cleared out $6 million in cryptocurrencies last week. Most of the funds were Solana (SOL), XRP, Binance (BNB), and Polygon (MATIC).
The FTX Saga And The Crypto Market
The revelation of the FTX crisis has further crashed the already suffering cryptocurrency market. Before the crisis, FTX was among the most prominent crypto exchanges globally.
The company was famous during the crypto winter, helping several crypto firms avoid bankruptcy. Unfortunately, the exchange lost investors’ assets worth billions in a sudden crash that received much media attention.
At this time, Coinmarketcap data shows that Bitcoin and Ethereum are trading at $16,556 and $1,195, respectively. Unfortunately, the latest FTX saga has wiped off both cryptos’ little gains accumulated in recent months.