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Inverse Bitcoin ETF Sees 300% Increase In Short Interest

Bitcoin ETFs had been seeing plenty of curiosity since they had been first given the inexperienced gentle by the Securities and Exchanges Fee (SEC) final yr, and whereas a few of them have waned, they nonetheless stay a great possibility for institutional traders eager to guess on the digital asset however not maintain any of it themselves. Following the success of the futures bitcoin ETFs have come the brief bitcoin ETFs which have now begun to dominate the market.

ProShares BITI Barrels Forward

The ProShares BITI ETF, popularly often known as the primary brief bitcoin ETF in the US has been making waves since lits aunch. Solely a bit of over per week outdated, the ETF has garnered the favor of institutional traders who’ve flocked to benefit from it. This has led to one of many quickest progress charges within the historical past of bitcoin ETFs given how rapidly inflows have poured in.

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The BITI was reported to have made a splash simply 4 days after launch which noticed it develop into the second-largest bitcoin ETF within the nation. As its recognition has grown, so have the traders flocked to it. It could do even higher in its second week, setting a brand new file with the quantity of BTC flowing in.

As of early this week, BITI’s holdings have climbed to a complete of three,811 BTC. A lot of the inflows had come into the ETF in direction of the top of June the place 700 BTC and 1,684 BTC had flowed into the fund on June twenty ninth and thirtieth respectively.

Quick BTC ETF hits new file | Supply: Arcane Analysis

With this, BITI has barreled ahead, and though it nonetheless stays the second-largest BTC ETF within the area, it has put extra hole between it and rivals akin to Valkyrie and VanEck bitcoin futures ETFs. 

Are Buyers Bearish On Bitcoin?

With $51 million stated to have flowed into brief BTC ETFs for the previous week and setting a brand new file, it does appear to level to the truth that institutional traders are bearish on the way forward for bitcoin. Nonetheless, that is solely the case when it’s checked out from one perspective.

Bitcoin price chart from TradingView.com

BTC trending at $20,000 | Supply: BTCUSD on TradingView.com

Even with its huge progress, the BITI nonetheless pales compared to the ProShares BITO, an extended BTC ETF. At 3,811, the brief bitcoin ETF solely makes up about 12% in comparison with the scale of its lengthy counterpart. This reveals that though curiosity is rising in brief bitcoin ETFs, nearly all of traders nonetheless favor to be lengthy in bitcoin, and that factors to extra bullish sentiment.

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However, the inflows into the BITI present that even when simply within the close to future, extra traders try to benefit from the perceived weak point available in the market. Specialists within the house have stated they count on this to proceed at the very least via the top of the yr. As such, it’s no shock that traders try to revenue off what they imagine to be one other six months of declining costs.

Featured picture from Admiral Markets, charts from Arcane Analysis and TradingView.com

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