Inverse Bitcoin ETF Sees Heavy Outflows as Traders Rethink the Bearish Bet
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded sizeable outflows of $3.12 million on January 21, 2026, a move that stripped nearly a quarter of its capital base in a single day. With assets under management now standing at $13.15 million, the latest redemption wave represents 23.7% of BTCZ’s AUM, signaling a sharp shift in positioning among traders who had been wagering on leveraged downside in Bitcoin.
The scale of the withdrawals is notable for a niche, leveraged inverse product. Such concentrated outflows often suggest that short-term speculators are locking in profits, cutting risk, or rotating to other vehicles rather than a broad-based loss of confidence in the underlying thesis. Given BTCZ’s mandate to provide 2x inverse daily exposure to Bitcoin, its flows often act as a sentiment gauge for leveraged bearish bets in the crypto market.
The related asset, BTC-USD, is currently trading at $87,605.50, having dropped 22.5% over the past three months. Despite that decline, the near-term picture remains fragile, with the 1-day technical signal flashing Sell. That combination—medium-term weakness but still-bearish near-term momentum—may be prompting some traders to take profits on inverse products like BTCZ after an already large move, rather than press the downside further with leveraged exposure.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.