Several Bitcoin ETFs have been launched and used by investors after the SEC approved the use of ETFs. However, the short Bitcoin ETF is currently dominating the market as institutional investors kept betting on it massively.
BITI ETF Rose To Limelight Within A Week Of Introduction
The ProShares BITI ETF is a fast-rising short Bitcoin ETF that rose to stardom after it was launched last week. Within the short period in which it was launched, it has become institutional investors’ favorite Bitcoin ETF.
The BITI made a record-breaking growth rate a couple of days after its introduction. It is currently the second biggest Bitcoin ETF in America.
At the moment, more investors are trooping in as its popularity continues to spread. Furthermore, analysts predicted that the BTCs flowing in would grow bigger in the second week after the first week’s massive success.
BITI has recorded a whopping amount of 3,811 BTC at the time of publication. Records showed that the short Bitcoin ETF received most of its coins at the June end.
According to the record, it obtained about 1,684 BTC and 700 BTC on the 30th and 29th of June respectively. Out of all the American Bitcoin ETFs, BITI is still ranked second in terms of size.
However, with its groundbreaking records, it has significantly left other ETFs behind on the table. Behind it are the likes of VanEck and Valkyrie ETFs.
Bullish Investors Keep Shorting Bitcoin
According to the report, institutional investors short BTC with more than $51 million on the ETFs in the previous week. Judging by the robust activity, it would seem as though investors expect Bitcoin’s price to decline more.
However, that assumption would have been wrong after considering its market counterpart. Even though BITI rapidly grew to a huge size over its first week, it is still relatively small compared to ProShare BITO.
BITO, a long Bitcoin ETF is so huge that BITI’s 3,811 BTCs only amount to 12% of BITO’s size. This depicts that investors are far more interested in longing for BTC than shorting it.
Hence, it can be deduced that the market remains positive that Bitcoin would soon begin its bullish run. However, BITI’s rapid growth showed that investors aimed at taking advance of Bitcoin’s current declining price.
Crypto analysts predicted that the price of Bitcoin may continue to decline till 2023. Therefore, with the believe that the bears would still prevail for about 5 months, investors are further inspired to open short positions for Bitcoin.