Investors Flock to UltraShort Bitcoin ETF as Post-Trump Rally Cools
The ProShares UltraShort Bitcoin ETF (SBIT), which seeks to deliver twice the inverse daily performance of Bitcoin, recorded its largest daily inflow since its April debut, attracting $18.8 million on Monday. Similarly, the ProShares Short Bitcoin ETF (BITI) saw $23 million in inflows over the past two trading sessions, reflecting growing bearish sentiment as Bitcoin’s rally slows.
Bitcoin, which surged close to the $100,000 mark last week amid optimism about Donald Trump’s pro-crypto policies, has dropped 7% over the last three days. The pullback comes as speculative fervor around the President-elect’s promises to embrace digital assets cools.
Outflows from Bitcoin-focused spot ETFs totaled $438 million on Monday, marking the third-largest outflow since their January inception, according to Bloomberg data . The sharp divergence in flows highlights traders hedging against further declines, with many bracing for potential volatility.
“Traders are hedging against potential downside risks,” said Nick Forster, founder of Derive.xyz. “However, pullbacks like these are not uncommon in bull markets.”
While the inflows into short funds indicate caution, market watchers emphasize that such retracements can be a natural part of Bitcoin’s notoriously volatile rally cycles.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
SEC Orders Ex-Genesis CEO to Pay $500K Penalty for Misleading Investors
Genesis suffered a $1 billion shortfall in 2022 due to the default of crypto hedge fund Three Arrows Capital (TAC).
Ahead of Trump's inauguration, experts weigh in on a 'pivotal moment' for crypto
Donald Trump will be sworn in as the 47th President of the United States later today, representing a “pivotal moment” for the crypto industry, according to experts.Establishing a bitcoin strategic reserve and commuting the sentence of Silk Road creator Ross Ulbricht are among the executive orders speculated for Trump’s first day.
'Trump inauguration euphoria' prompts $2.2 billion in crypto fund flows and AUM all-time high: CoinShares
Global crypto investment products attracted net inflows of $2.2 billion last week amid “Trump inauguration euphoria,” according to asset manager CoinShares.Last week’s inflows and positive price action were enough to propel total assets under management to an all-time high, CoinShares Head of Research James Butterfill noted.
Trump Family Memecoins Overload Solana Network, Spark Investor Concerns