Inverse Bitcoin ETF Sees Investors Flee as Short Bets Backfire
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded sharp outflows of $1,530,366 on January 7, 2026, as traders pulled capital from the leveraged short-Bitcoin vehicle. With total assets under management now at $10,196,736, the single-day redemption represented roughly 15% of the fund’s AUM, underscoring a swift reversal in sentiment toward bearish Bitcoin positioning.
Such a sizable withdrawal, relative to the fund’s size, suggests that speculators who had bet against Bitcoin’s prior rally are trimming exposure or taking profits after a volatile quarter. Leveraged inverse products like BTCZ typically attract short-term tactical traders, and flows of this magnitude can signal a broader repositioning in derivatives and futures markets linked to Bitcoin.
The related asset, BTC-USD, is currently trading at $90,234.03, down about 25.49% over the past three months. Despite that steep drawdown, the 1-day technical stance on the token is a cautious Hold, reflecting a market that appears undecided on whether the latest pullback marks the end of the downtrend or merely a pause before further weakness.
The combination of heavy outflows from BTCZ and a neutral short-term signal on Bitcoin itself highlights a market in transition, with bearish conviction moderating even as prices remain well below recent highs. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.