Short Sellers Flock to Bitcoin Bear ETF as Volatility Deepens
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ProShares UltraShort Bitcoin ETF, ticker SBIT, saw a fresh wave of capital on January 2, 2026, with $5,275,500 in new inflows, even as crypto markets remain on edge. The move represents roughly 4.05% of the fund’s latest assets under management, which stand at $130.21 million, underscoring a notable uptick in demand for leveraged downside exposure to Bitcoin.
The size of the single-day flow, relative to SBIT’s AUM, suggests investors are not merely rebalancing but actively positioning for further turbulence or declines in the underlying asset. Such flows into an ultra-short vehicle often signal hedging by sophisticated traders as well as outright speculative bets from retail participants seeking to profit from Bitcoin’s swings.
The related asset, BTC-USD, is currently trading at $91,424.21, having shed about 27.18% over the past three months. Despite that steep pullback, the one-day technical picture remains cautious rather than capitulatory, with the signal sitting at Hold. That combination—deep recent losses but a neutral short-term signal—may be encouraging investors to either extend hedges or build fresh short-term bearish positions via SBIT.
Against this backdrop, the latest inflows into ProShares UltraShort Bitcoin ETF highlight how leveraged inverse products have become barometers of sentiment around crypto risk, particularly when the market narrative shifts from euphoria to capital preservation. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.