The world’s first “short-selling” Bitcoin ETF exploded 300% in just a few days of launch

The world’s first “short-selling” Bitcoin ETF exploded 300% in just a few days of launch


2022-07-06 11:43:42

Although only launched late last month, the ProShares Short Bitcoin Strategy ETF (BITI) seems to have become a star today.

The world’s first “short-selling” Bitcoin ETF exploded 300% in just a few days of launch

Since releaset at the end of June, ProShares Short Bitcoin Strategy ETF (BITI), fund ETF Bitcoin pioneer in the US has taken a hit. According to the data is Arcane Research announced on the evening of July 6, capital inflows are focusing mainly on short-selling BTC ETF products.

BITI has grown more than 300% in just a few days, Arcane share in a tweet:

Source: Arcane Research

The timing of the BITI launch itself is also considered quite ideal, as BTC has plummeted to an 18-month low of $17,600 and is still entrenched around the $20,000 mark.

The GBTC premium, the difference between the market price of Bitcoin spot and the GBTC stock held by the trust, has been negative for over a year. This metric shows that the inflow of BTC has decreased significantly, leading to a situation where GBTC is trading below the spot price in the market.

The difference between the Bitcoin spot price in the market compared to the price of the trust fund. Source: Coinglass

Analysts’ expectations are still tilted towards the market trend that will continue to turn bad, BTC will slide again and the above figure of BITI also somewhat confirms the sentiment of the current crowd.

Follow CoinSharesweekly capital flow into BTC short-selling products 51 million USD out of a total of 64 million USD inflows for the whole week. Meanwhile, investments in BTC (long) products are only at $20 million.

As Cointelegraph reported, $423 million in institutional capital outflows from digital investment products between June 20 and June 24 alone. Although many big players have retreated from the market, investment products that offer the ability to short BTC have signaled a reversal, the reason is attributed to the news that ProShares launched the first “short-sell” Bitcoin ETF. first in the United States.

ProShares has emerged since the launch of the first Bitcoin ETF in the US based on futures contracts, reaching $1 billion in trading volume on the first day of launch, followed by many other Bitcoin derivatives ETFs that were approved one by one. Approved by the Securities and Exchange Commission (SEC).

Proshares’ counterpart Grayscale has been “estranged” by the SEC time and time again. Most recently, the SEC rejected a proposal to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF. With the above decision, Grayscale has filed a lawsuit against the US Securities and Exchange Commission and is currently handling the application by the Washington DC Court of Appeals.

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