World’s first short Bitcoin ETF sees exposure explode 300% in days


Bitcoin (BTC) stays a well-liked institutional funding goal in July, however the cash is just not betting on a brilliant future.

In line with information from analysis agency Arcane Analysis revealed July 6, institutional flows centered on merchandise providing publicity to shorting BTC within the first week of the month.

Shorting Bitcoin is the secret

Since launching in the US in late June, the ProShares Quick Bitcoin Technique ETF (BITI), the primary exchange-traded fund (ETF) to be “brief” BTC, has proved a hit.

That pattern has solely accelerated in July, with brief publicity leaping over 300% in days, information confirms.

“BITI, the primary inverse BTC ETF, grew additional final week,” Arcane summarized in Twitter feedback.

“After turning into the second-largest bitcoin-related BTC ETF within the U.S. after solely 4 days of buying and selling, the online brief publicity has grown additional and elevated by greater than 300% final week.”

ProShares Quick Bitcoin Technique ETF (BITI) publicity chart. Supply: Arcane Analysis/ Twitter

The timing for BITI within the U.S. is conspicuous in itself, coming as BTC/USD plumbed multi-year lows of $17,600.

As Cointelegraph reported, expectations amongst analysts stay skewed to the downside, and the BITI inflows seem to verify that institutional sentiment is likewise.

Separate information published by digital asset funding agency CoinShares on July 4, in the meantime, put weekly inflows into Short BTC products at $51 million — easily the majority of the week’s total of $64 million.

While long BTC investments were just $20 million, CoinShares nonetheless highlighted persisting demand for such products despite shorts stealing the limelight.

“This highlights investors are adding to long positions at current prices, with the inflows into short-Bitcoin possibly due to first-time accessibility in the US rather than renewed negative sentiment,” it wrote.

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Business (or lack of) as usual for GBTC

Testing times, meanwhile, remain for the stalwart institutional Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC).

Related: Bitcoin price approaches potential springboard to $23K as DXY cools surge

After U.S. regulators rejected Grayscale’s application to transform the Belief to a Bitcoin spot ETF, the agency started authorized motion, an indication of the frustration going through an trade coping with each regulatory scrutiny and declining asset costs.

The so-called GBTC premium, the distinction between Bitcoin spot worth and shares of GBTC, has been adverse for over a yr, at a number of factors turning into a more than 30% discount.

GBTC premium vs. asset holdings vs. BTC/USD chart. Supply: Coinglass

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a choice.