Inverse Bitcoin ETF Sees 300% Increase In Short Interest


Since their approval by the Securities and Exchanges Commission last year, Bitcoin ETFs have been attracting a lot of attention. While some of these interest has waned, many institutional investors still consider them a viable option to place bets on the digital asset, but not own any. The short bitcoin ETFs, which are now dominating the market, have followed the success of the futures-based bitcoin ETFs.

ProShares BITI Barrels Ahead

Since lits aunch, the ProShares BITI ETF has been making waves as the first short-bitcoin ETF in the United States. The ETF is just a little more than a week old and institutional investors have been flocking to take advantage. Given the rapid inflows, this has resulted in one of the highest growth rates of any bitcoin ETF.

The BITI made headlines just four days after its launch, making it the second-largest Bitcoin ETF in the United States. Investors have been flocking to the BITI as its popularity grows. It would perform even better in its second weeks, setting a new record for the flow of BTC.

BITI’s total holdings rose to 3,811 BTC as of this week. The majority of inflows to the ETF were towards the end June, when 700 BTC and 1,684 BTC respectively had entered the fund.

BITI’s momentum has continued to grow and, although it is still the second-largest BTC ETF within the region, it has created more distance between itself and its competitors, such as VanEck and Valkyrie bitcoin futures ETFs.

Are Investors Bearish On Bitcoin?

It seems that institutional investors are bullish about bitcoin’s future, with $51million said to have been transferred into short BTC ETFs over the past week. This is a new record. This is true if you only look at it from one perspective.

Despite its huge growth, the BITI still falls short of the ProShares BITO long BTC ETF. The short bitcoin ETF is only 12% smaller than its long counterpart at 3,811. This indicates that even though interest in short bitcoin ETFs is increasing, most investors prefer to remain long in bitcoin. That points to more bullish sentiment.

Nevertheless, inflows to the BITI indicate that investors are looking to capitalize on the market’s perceived weakness, even if it is only for a short time. According to experts in the field, this trend is expected to continue until at least the end of the year. Investors are looking to make a profit from what they perceive to be six more months of falling prices.

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