Is Short Bitcoin ETF Exposure Gearing Up For A Squeeze?

Bitcoin’s short exposure has been gaining favor from both retail and institutional investors over the last couple of months. For most, this position in the digital asset has paid off, given its continued decline over this time. Even then, investors have not eased up in their exposure to this investment vehicle. The total assets under management for short bitcoin ETF are on the rise, sparking speculations of a potential short squeeze. Investors Increase Exposure When the ProShares Short Bitcoin ETF first debuted earlier in 2022, it came out with a lot of support from investors. These investors were already used to longing bitcoin through the offered ETFs but had finally gotten the ability to short the digital asset in a bear market. It was one of the largest crypto ETF launches, reaching more than 3,000 BTC in exposure in less than a month. Related Reading: Solana Clears 100 Billion Transaction Count As NFTs Gain Prominence Since then, there has been a somewhat steady increase in exposure to this ETF. By the end of August 2022, it had touched a new all-time high of 5,335 BTC. This followed the decline of the price of BTC below $19,000, creating a trend of increased exposure each time the price dipped.   This trend has also continued into the month of September, which has been a brutal month for the digital asset. The Short BTC ETF exposure had declined at the start of September as investors took profit, but it had be...