Leverage Chill: Investors Pull Back From 2x Bitcoin Strategy ETF as Volatility Bites
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The 2x Bitcoin Strategy ETF, ticker BITX, saw a sharp outflow of $22.95 million on December 31, 2025, capping the year with a notable bout of risk reduction. The latest redemption represents roughly 1.59% of the fund’s $1.44 billion in assets under management (AUM), a meaningful but not destabilizing shift for one of the market’s more aggressive Bitcoin-linked products.
The move suggests leveraged crypto traders are dialing back exposure after a turbulent quarter for the underlying asset. The 2x structure amplifies Bitcoin’s daily moves, making BITX particularly sensitive to sentiment swings and short-term positioning rather than long-term fundamentals. A nearly 2% slice of AUM walking out in a single day points to active profit-taking or forced de-risking as year-end books were closed.
The related asset, BTC-USD, is currently trading at $89,769.99, down about 26.17% over the past three months, underscoring the rough backdrop for leveraged long products. Despite that drawdown, the short-term technical tone is ambiguous rather than outright bearish, with a 1-day signal of Hold, suggesting traders are pausing rather than capitulating as they reassess risk heading into the new year.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.