UltraShort Bitcoin ETF Offering 2x Inverse Returns Sees Record Volume as BTC Holds Above $90K

Updated
Nov
28,
2024,
11:22 a.m.

Published
Nov
28,
2024,
11:03 a.m.

There’s
something
about
major
psychological
price
levels,
like
bitcoin’s
(BTC)
$100,000
mark.
As
prices
near
these
thresholds,
anything
tied
to
the
asset
gets
an
extra
spark
of
energy.

The
Nasdaq-listed
ProShares
UltraShort
Bitcoin
ETF
(SBIT)
is
a
case
in
point,
posting
record
trading
volume
of
over
8
million
shares
on
Nov.
13
as
bitcoin
topped
$90,000
for
the
first
time
and
strengthening
the
case
for
a
rally
into
six
figures
by
year-end,
data
tracked
by
TradingView
show.

Since
then,
BTC
has
held
between
$90,000
and
$100,000,
and
the
ETF’s
daily
trading
volume
has
averaged
just
over
5
million
shares.
That’s
significantly
greater
than
the
sub-2
million
readings
over
the
preceding
months.

The
ETF
seeks
to
deliver
twice
the
inverse
daily
price
performance
of
bitcoin,
so
that
if
BTC
falls
by
1%,
the
ETF
rises
by
2%,
offering
a
leveraged
bearish
bet
on
the
cryptocurrency.

The
spike
in
volume
could
be
associated
with
the
capitulation
of
investors
who
bought
the
ETF
early
this
year
anticipating
a
slide
in
BTC.
Or
it
could
be
bulls
protecting
their
long
positions
in
spot/futures
markets
from
possible
BTC
price
pullbacks
as
the
key
$100,000
level
approaches.

The
latter
seems
to
be
the
case,
because
inflows
into
the
ETF
have
picked
up.
The
fund
registered
a
net
inflow
of
$17.7
million
on
Friday,
the
most
since
its
debut
in
April,
according
to
data
source
ETF.com.

Bitcoin
bulls,
however,
can
still
stay
optimistic
as
the
11
spot
bitcoin
ETFs
have
accumulated
over
$2.5
billion
in
net
inflows
since
Nov.
13,
according
to
data
tracked
by

Farside
Investors.