Investors Exiting Bitcoin Short Funds

In the past few days, investors have redeemed around $58 trillion from bitcoin short funds. This indicates that the negative sentiment in the crypto market is high. Bitcoin short funds bet on the downside of the largest cryptocurrency by market capitalization.

of CoinShares Report As per the report, the assets under management (AUM) of these funds have also come down to $36.3 billion in the last one week, the lowest level since February last year. The price of bitcoin fell below $20,000 last week, its lowest level since December 20 last year. However, since then there has been some recovery in its price and it is slightly above $21,000. The decline in the crypto market has increased since the US Federal Reserve raised interest rates to control inflation. Some crypto firms are offering investors a chance to make profits by betting on a fall in bitcoin.

These firms include ProShares linked to exchange traded funds (ETFs). The firm has launched the Short Bitcoin Strategy ETF. This will give investors an opportunity to profit from the fall in the price of bitcoin or to hedge their investments in crypto. Michael Sapir, chief executive officer of ProShares, said in a statement, “It has been learned in recent months that the value of bitcoin may be declining. Opportunity to make profits or hedge your cryptocurrency holdings.” He told that in the investors brokerage account there is a ETF You can buy and take short positions in bitcoin. Bitcoin ETFs that track the price of cryptocurrencies are gaining popularity in the US due to a delay in allowing spot bitcoin ETFs from the Securities and Exchange Commission (SEC), the market regulator.

Last year the SEC allowed the first bitcoin futures ETF. It was launched by ProShares. This gave institutional and retail investors access to bitcoin without facing technical complications or legal hurdles. ProShares’ Short Bitcoin ETF will give institutional investors the opportunity to trade seamlessly in the largest cryptocurrency by market capitalization.

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