Inverse Bitcoin Traders Hit the Exit: BTCZ Sees 8% of AUM Walk Out in a Single Day

Inverse Bitcoin ETF Sees Sharp Outflows as Crypto Slump Tests Bearish Bets

The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded significant investor outflows on December 29, 2025, with $1,011,480 exiting the fund. The redemption represents roughly 8.33% of its latest assets under management (AUM), which now stand at $12,137,760. The sizable move suggests investors are rapidly reassessing leveraged bearish exposure to Bitcoin as volatility remains elevated.

BTCZ is designed to deliver twice the inverse daily performance of Bitcoin, making it a tactical vehicle for traders rather than long-term holders. An outflow of more than 8% of AUM in a single day signals either profit-taking after prior declines in the underlying asset or growing caution about maintaining leveraged short positions into year-end and early 2026. Such flows can amplify short-term price swings in derivatives markets, especially when liquidity is thin.

The related asset, BTC-USD, is currently trading at $88,579.64, down about 21.06% over the past three months, underscoring the depth of the recent pullback after a prolonged rally earlier in the year. Despite that correction, near-term signals remain mixed, with the 1-day technical indicator flashing a cautious Hold. This combination of a steep three-month decline and neutral short-term technicals may be encouraging some BTCZ holders to lock in gains from inverse strategies or step to the sidelines until a clearer directional trend emerges.

The latest flows into and out of BTCZ highlight how leveraged inverse products can act as a barometer of sentiment at the extremes of Bitcoin’s cycle: rising inflows when traders seek downside hedges, and swift outflows when uncertainty about further declines grows. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.