Short Squeeze or Profit-Taking? Investors Pull Nearly 8% of Assets from ProShares UltraShort Bitcoin ETF

Short Bitcoin Bears Pull Back as ProShares UltraShort Bitcoin ETF Sees Heavy Outflows

The ProShares UltraShort Bitcoin ETF, SBIT, saw investors yank $8.77 million in capital on January 16, 2026, marking a notable vote of reduced conviction in leveraged downside bets on Bitcoin. The single-day outflow represents roughly 8.3% of the fund’s $105.7 million in assets under management, a sizable shift for a niche inverse product designed to profit from declines in the world’s largest cryptocurrency.

The move comes against a challenging backdrop for the related asset, BTC-USD, which is currently trading around $90,933.51. Despite that lofty price level, Bitcoin has slipped about 16.2% over the past three months, a drawdown that would typically underpin demand for bearish and inverse strategies rather than prompt withdrawals from them.

Instead, the pronounced redemption from SBIT suggests a segment of traders may be locking in profits on prior short positions or reducing risk after an extended period of volatility. With Bitcoin’s three-month decline already substantial, some market participants appear to be reassessing how much further downside is left, especially in the context of evolving macro conditions and shifting expectations around regulatory and institutional adoption.

Short-term signals, however, remain cautious. Bitcoin’s one-day technical outlook currently flashes a Sell signal, indicating that near-term momentum and technical indicators still lean bearish even as investors step back from leveraged inverse exposure. That divergence—cash flowing out of a bearish ETF while technicals stay soft—highlights growing uncertainty about whether the recent correction is nearing exhaustion or merely pausing.

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