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FTX crisis leads to record inflows into short-investment products

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Institutional investors have responded to the negative sentiment caused by FTX’s collapse, with record institutional inflows into crypto-focused short-investment products.

According to CoinShares’ chief strategy officer James Butterfill, 75% of the total inflows by institutional crypto investors for the week ending Nov.

18 were placed in short investment products — essentially a bet that crypto prices will decline.Butterfill said the takeup of short positions by investors is likely “a direct result of the ongoing fallout from the FTX collapse,” while the total assets under management (AUM) for institutional investors is now at $22 billion — the lowest in two years.Over the week, $14 million was poured into short-ETH investment products.

CoinShares said it was “the largest weekly inflow on record.”CoinShares cited “renewed uncertainty” over Ethereum’s Shanghai upgrade slated for Sep.

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