There’s one thing about main psychological worth ranges, like bitcoin’s (BTC) $100,000 mark. As costs close to these thresholds, something tied to the asset will get an additional spark of power.
The Nasdaq-listed ProShares UltraShort Bitcoin ETF (SBIT) is a working example, posting file buying and selling quantity of over 8 million shares on Nov. 13 as bitcoin topped $90,000 for the primary time and strengthening the case for a rally into six figures by year-end, information tracked by TradingView present.
Since then, BTC has held between $90,000 and $100,000, and the ETF’s each day buying and selling quantity has averaged simply over 5 million shares. That is considerably better than the sub-2 million readings over the previous months.
The ETF seeks to ship twice the inverse each day worth efficiency of bitcoin, so that if BTC falls by 1%, the ETF rises by 2%, providing a leveraged bearish wager on the cryptocurrency.
The spike in quantity may very well be related to the capitulation of buyers who purchased the ETF early this yr anticipating a slide in BTC. Or it may very well be bulls defending their lengthy positions in spot/futures markets from doable BTC worth pullbacks as the important thing $100,000 degree approaches.
The latter appears to be the case, as a result of inflows into the ETF have picked up. The fund registered a internet influx of $17.7 million on Friday, essentially the most since its debut in April, in response to information supply ETF.com.
Bitcoin bulls, nonetheless, can nonetheless keep optimistic because the 11 spot bitcoin ETFs have gathered over $2.5 billion in internet inflows since Nov. 13, in response to information tracked by Farside Traders.
