Bitcoin Bears Blink as Leveraged Short ETF Sees Nearly One-Quarter of Assets Walk Out the Door
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded sizeable outflows on January 21, 2026, with investors pulling approximately $3.12 million from the fund. The latest redemption wave leaves the ETF with about $13.15 million in assets under management (AUM), meaning roughly 23.7% of its capital base shifted out in a single day—an unusually sharp move even for a leveraged, inverse crypto vehicle.
As a fund designed to deliver twice the inverse daily performance of Bitcoin, BTCZ typically attracts traders positioning for short-term downside in the flagship cryptocurrency. The magnitude of the outflows suggests a notable rotation: either bearish conviction on Bitcoin is fading, or traders are locking in profits after a volatile stretch in which leveraged products can see rapid swings in both assets and flows.
The related asset, BTC-USD, is currently trading around $89,437. Over the past three months, Bitcoin has dropped about 21.5%, underscoring the challenging backdrop for spot holders even as inverse products like BTCZ sought to capitalize on the slide. Despite that medium-term decline, the 1-day technical signal for Bitcoin points to continued caution, flashing Sell on short-term indicators.
Heavy outflows from a bearish, leveraged ETF on a still-weak Bitcoin price profile may hint at shifting sentiment among speculative traders—either a belief that much of the downside has already been priced in, or simple risk reduction after an intense period of leveraged positioning. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.