Inverse Bitcoin ETF Sees Heavy Outflows as Traders Question Bearish Bets
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, ticker BTCZ, recorded significant outflows on January 2, 2026, with investors pulling $967,679 from the fund. The move represents roughly 8.82% of its latest assets under management, which now stand at $10.97 million, signaling a notable shift in sentiment toward leveraged bearish exposure to Bitcoin.
The sharp outflow from BTCZ suggests some traders may be taking profits or retreating from high-octane inverse strategies after a volatile quarter for Bitcoin. With nearly one-tenth of the fund’s capital exiting in a single day, the flows highlight how quickly leveraged products can see confidence wax and wane as the underlying asset’s narrative evolves.
The related asset, BTC-USD, is currently trading at $91,567.26, down about 23.62% over the past three months. Despite the medium-term drawdown, its 1-day technical signal flashes a bullish tilt at Buy, hinting that near-term momentum may be turning in favor of Bitcoin even as some investors unwind leveraged short positions via BTCZ.
The combination of renewed short-term strength in Bitcoin and sizable withdrawals from a 2x inverse ETF underscores the market’s tactical repositioning: traders appear less confident in aggressive downside plays and more cautious about maintaining leverage against a still-volatile digital asset. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.