Leveraged Bet Backfires: BTCL Suffers Massive Outflows as Bitcoin Slide Deepens

Leveraged Bitcoin ETF Sees Whiplash Outflow as Volatility Bites

The T-Rex 2X Long Bitcoin Daily Target ETF, BTCL, recorded a dramatic reversal in sentiment on December 18, 2025, as investors pulled approximately $54.6 million from the fund. The outflow is striking given BTCL’s latest assets under management of about $36.7 million, meaning roughly 149% of its AUM shifted in a single day — a sign of aggressive repositioning in a highly leveraged product tied to Bitcoin’s daily performance.

Such a large outflow relative to total assets underscores how quickly capital moves in leveraged crypto strategies. BTCL, designed to deliver 2x the daily return of Bitcoin, tends to attract short-term traders and speculators, who often pile in during momentum phases and exit rapidly when the underlying asset stumbles or volatility spikes. The latest flow suggests that risk appetite among these traders has cooled sharply.

The related asset, BTC-USD, is currently trading around $88,918.88, having dropped roughly 23.2% over the past three months. That medium-term slide has been accompanied by a cautious near-term tone: the 1-day technical signal on Bitcoin now flashes Sell, reinforcing the idea that traders may be de-risking rather than buying the dip.

For leveraged vehicles like BTCL, these conditions can be particularly unforgiving. Daily rebalancing magnifies both gains and losses, and when Bitcoin’s trend turns lower, leveraged long products often see swift outflows as traders seek to limit drawdowns or rotate into less volatile exposures. The combination of a sharp three-month price decline in Bitcoin and a negative short-term technical outlook helps explain why a single day’s flow could eclipse BTCL’s entire asset base.

For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.