Bitcoin ETFs have been seeing a lot of interest since they were first given the green light by the Securities and Exchange Commission (SEC) last year, and while some of them have fallen short, they still remain a good option for institutional investors looking to make money. want to bet. Digital assets are there, but hold none of it to themselves. Following the success of the Futures Bitcoin ETF, short Bitcoin ETFs have come to dominate the market.
ProShares BITI barrel forward
The ProShares BITI ETF, popularly known as the first short bitcoin ETF in the United States, has been making waves since its inception. Only a little over a week old, the ETF has favored institutional investors who have flocked to take advantage of it. This has led to one of the fastest growth rates in the history of bitcoin ETFs, given how fast the inflows have taken place.
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BITI was reported to have made a splash just four days after its launch, making it the second largest bitcoin ETF in the country. As its popularity has increased, so have the investors attracted towards it. It will perform even better in its second week, setting a new record with BTC inflow volume.
At the beginning of this week, BITI’s holdings have grown to a total of 3,811 BTC. Most of the inflows came into the ETF at the end of June, where 700 BTC and 1,684 BTC flowed into the fund on June 29 and 30, respectively.
Short BTC ETF hits new record | Source: Arcane Research
With this, BITI has moved on, and although it still remains the second largest BTC ETF in the region, it has put more of a gap between it and competitors such as the Valkyrie and VanEck Bitcoin Futures ETFs.
Are investors bearish on bitcoin?
$51 million is said to have flown into the short BTC ETF over the past week and set a new record, pointing to the fact that institutional investors are bearish about the future of bitcoin. However, this is only the case when viewed from one point of view.
BTC is trending at $20,000. Source: BTCUSD at TradingView.com
Despite its massive growth, BITI is still lower than the ProShares BITO, a long BTC ETF. At 3,811, the short bitcoin ETF makes up only 12% compared to the size of its long counterpart. This suggests that although interest in short bitcoin ETFs is increasing, most investors prefer to stay long in bitcoin, and this indicates more bullish sentiment.
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Nevertheless, the inflow into BITI suggests that even if in the near future, more investors are trying to take advantage of the perceived weakness in the market. Space experts have said they expect this to continue at least until the end of the year. As such, it should come as no surprise that investors are trying to take advantage of what they believe to be another six months after the price drop.
Featured image from Admiral Markets, charts from Arcane Research and TradingView.com
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