Short Sellers Lean In: Inverse Bitcoin ETF Sees Surge in Fresh Bearish Bets
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, drew notable fresh capital on January 26, 2026, as investors deployed $821,331 of net new money into the fund. The leveraged inverse product now oversees $14.54 million in assets under management (AUM), with the latest flow representing roughly 5.65% of its total size—an unusually large single-day allocation that underscores growing conviction in downside exposure to Bitcoin.
This brisk inflow suggests traders are increasingly using BTCZ as a tactical vehicle to express short-term bearish views or hedge spot holdings, especially as volatility in the underlying crypto market persists. With more than one-twentieth of the fund’s AUM added in a single session, positioning appears to be tilting more aggressively toward leveraged bets against Bitcoin’s price.
The related asset, BTC-USD, is currently trading at $87,739.53, having dropped about 20.56% over the past three months. That retreat follows a prolonged rally that had left many investors wary of overheating valuations and vulnerable to profit-taking. The latest 1-day technical signal for Bitcoin flashes a bearish tone, standing at Strong Sell, which aligns with the renewed appetite for inverse exposure reflected in BTCZ’s flows.
While leveraged inverse ETFs like BTCZ are designed for short-term tactical trades rather than long-term holding, the scale of the latest inflow hints at a segment of the market increasingly willing to bet that Bitcoin’s corrective phase is not yet over. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.