There’s one thing about main psychological value 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 vitality.
The Nasdaq-listed ProShares UltraShort Bitcoin ETF (SBIT) is a working example, posting report 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 every day buying and selling quantity has averaged simply over 5 million shares. That is considerably larger than the sub-2 million readings over the previous months.
The ETF seeks to ship twice the inverse every day value efficiency of bitcoin, so that if BTC falls by 1%, the ETF rises by 2%, providing a leveraged bearish guess on the cryptocurrency.
The spike in quantity might be related to the capitulation of buyers who purchased the ETF early this yr anticipating a slide in BTC. Or it might be bulls defending their lengthy positions in spot/futures markets from potential BTC value 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 web influx of $17.7 million on Friday, probably the most since its debut in April, in keeping with information supply ETF.com.
These bulls, nevertheless, could also be feeling demoralized because the 11 spot bitcoin ETFs have collected over $2.5 billion in web inflows since Nov. 13, in keeping with information tracked by Farside Buyers.
