Is Short Bitcoin ETF Exposure Gearing Up For A Squeeze?

Bitcoin’s short exposure has been gaining favor from both retail and institutional investors over the last couple of months. This position in bitcoin has proven to be a good investment, considering its steady decline. Investors are still not reducing their exposure to this investment vehicle. There are speculations about a possible short squeeze as the total assets under management of short bitcoin ETF is on the rise.

Investors Increase Their Exposure

The ProShares Short Bitcoin ETF was first introduced in 2022. It received a lot support from investors. The investors had been longing for bitcoin and were familiar with the ETFs. However, they now have the option to trade the cryptocurrency in bear markets. This was the biggest crypto ETF launch, with more than 3000 BTC exposure in less that a month.

There has been an increase in the exposure of this ETF over time. The ETF had reached an all-time record of 5,335 BTC at the close of August 2022. The decline in the BTC price below $19,000 led to a tendency of increasing exposure as the price fell.

Short Bitcoin ETF


This trend continues into September which has been an extremely difficult month for digital assets. Short BTC ETF exposure declined in September due to investors taking profit. However, it was beginning to rise again and is nearing its all-time high.

ProShares’ BITI touches 5,270 BTC in exposure on September 23rd, the 3rd-largest so far since launch. The drop in bitcoin price to low $18,000s had caused this increase. However, the market recovered.

Are You Ready for Bitcoin’s Short-Squeeze?

An increase in exposure to short Bitcoin ETFs may be leading to another short-squeeze. Although investors had taken profits last week from their positions, which led to over $5 million in outflows, they are still shorting bitcoin.

Investors who invest more at local bottoms might be trading in bad ways. But it’s also worth noting that the market trend has been lower each dip. Spot trading has seen less selling and buying, which can have an effect on spot trading.

Bitcoin price chart from

BTC Price Recovers Above $19,000 Source: BTCUSD at| Source: BTCUSD on

The price of bitcoin could fall to $17,000 if short BTC demand continues to grow and hit a new record. This could easily be caused by a slight shift in the investment trend. That is, more money is flowing into short BTC ETFs even though bitcoin prices are recovering. 

Bitcoin’s price is still showing a weak recovery, which gives credence to the short positions being assumed by investors. The $19,000 mark is still holding, but it’s not holding strong. A further drop could cause Short BTC exposures to reach a new record.


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