Short-Side Bitcoin Bet Sees Cash Drain as Traders Reassess Downturn
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded outflows of $841,160 on December 24, 2025, a notable pullback for a niche product designed to profit from declines in the world’s largest cryptocurrency. With assets under management now at roughly $13.22 million, the latest redemption wave represents about 6.36% of the fund’s AUM, signaling that a meaningful slice of investors is trimming or closing bearish, leveraged positions.
The exodus comes against the backdrop of a sharply weaker Bitcoin market. The related asset, BTC-USD, is currently trading at $87,867.55, down about 20.61% over the past three months—a slide that would typically support demand for an inverse vehicle like BTCZ. Yet the fund’s sizeable outflows suggest some traders may be locking in gains from the recent downturn or reducing risk exposure amid heightened volatility and thin holiday liquidity.
Despite the recent price damage, near-term signals remain bearish. Bitcoin’s 1-day technical reading is flashing a Strong Sell, underscoring persistent downside momentum even as leveraged short products such as BTCZ see capital head out the door. That disconnect hints at a more nuanced positioning shift: investors appear wary of holding leveraged bearish exposure into year-end, even while technicals have yet to show a decisive reversal.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.