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.
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