Inflows into ProShare’s short Bitcoin ETF hits $59 million: Report
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The crypto crash has pushed up interest in short Bitcoin ETFs, with the ProShares Short Bitcoin Strategy ETF (BITI) seeing massive daily inflows since it launched a little over a week ago.
Data from crypto analytics firm Arcane Research cited by Forbes showed interest in the ProShares inverse ETF, which allows investors to bet on Bitcoin price declines, had inflows of 1684 BTC on Wednesday.
Per the report, BITI inflows have jumped to 3086.2 BTC, putting the fund’s holdings at roughly $59 million. The ProShares Short Bitcoin Strategy ETF has consequently become the second largest BTC-linked ETF in the US.
Why investors are shorting bitcoin
According to the analytics firm, the increased demand for the inverse vehicle that delivers a 1% profit for investors if BTC value falls 1% is down to Bitcoin’s high correlation to equities. The firm also points to inflation and the turmoil that continues to unveil in the crypto market as key elements of why this is a move traders fancy.
Arcane Research analyst Vetle Lunde told Forbes that short demand was rising as a result of more investors either looking to hedge against current declines or as nothing but a realization of the opportunity available to benefit from the crash.
Notably, Wednesday’s inflows coincided with the US Securities and Exchange Commission (SEC)’s rejection of the Grayscale spot Bitcoin ETF proposal. Grayscale has filed a lawsuit against the securities regulator.
The post Report: Short Bitcoin ETF attracting a lot of attention appeared first on CoinJournal.
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