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

cointelegraph.com:

Bitcoin (BTC) remains a popular institutional investment target in July, but the money is not betting on a bright future.

According to data from research firm Arcane Research published July 6, institutional flows focused on products offering exposure to shorting BTC in the first week of the month.

Since launching in the United States in late June, the ProShares Short Bitcoin Strategy ETF (BITI), the first exchange-traded fund (ETF) to be "short" BTC, has proved a hit.

That trend has only accelerated in July, with short exposure jumping over 300% in days, data confirms.

"BITI, the first inverse BTC ETF, grew further last week," Arcane summarized in Twitter comments.

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

As Cointelegraph reported, expectations among analysts remain skewed to the downside, and the BITI inflows appear to confirm that institutional sentiment is likewise.

Separate data published by digital asset investment firm CoinShares on July 4 meanwhile 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.

Testing times meanwhile remain for 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