Short Bitcoin ETF Sees Higher Trading Volume Last Week as Longs Liquidated

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The recently-launched brief Bitcoin (BTC) exchange-traded fund (ETF) BITI noticed increased buying and selling volumes final week in comparison with its launch week. The peak in quantity to this point occurred as liquidations of leveraged bitcoin lengthy positions reached its highest in shut to 2 weeks.

Judging from buying and selling information from NYSE Arca and TradingView, greater than 1.5m shares of BITI was traded on June 30, making up roughly USD 65.2m in buying and selling quantity. The day marked the height in quantity for the ETF to this point, after considerably muted curiosity from merchants through the first week.

On its first day of buying and selling on June 21, BITI noticed simply 183,284 shares traded, value roughly USD 7m. That was adopted by a spike to 870,000 shares, or USD 35m, on day two.

During its second week of buying and selling, BITI noticed its buying and selling quantity improve day-to-day, earlier than a slight drop in quantity on the final day of the week on July 1. Following the 4th of July vacation, the market opened once more with excessive quantity within the ETF on Tuesday the fifth, earlier than curiosity briefly bitcoin publicity fell markedly on the sixth, as bitcoin spot costs rose.

BITI worth and quantity:

Source: TradingView

Not surprisingly, maybe, is that the buying and selling quantity within the brief bitcoin ETF is comparatively carefully correlated to the spot worth of bitcoin.

BTC spot worth and BITI quantity:

Source: TradingView

Worth noting, nevertheless, is that the ETFs buying and selling quantity on the primary day made up solely a tiny fraction of the USD 1bn in quantity that was seen on the primary day of buying and selling for BITO, the primary common bitcoin futures-backed ETF to launch within the US.

In phrases of whole belongings underneath administration, BITI on Friday final week had a web brief publicity equal of BTC 3,811 (roughly USD 75m), making it the second-largest US bitcoin-related ETF, Arcane Research said this week.

The third and fourth largest bitcoin ETFs within the US are the common ‘lengthy’ bitcoin ETFs from Valkyrie (BTF) and VanEck (XBTF), with whole web belongings of USD 18.5m and USD 17.8m.

Volume peak coincides with lengthy liquidations

The peak in buying and selling quantity for BITI that was seen on June 30 coincided with an uptick in liquidations of leveraged bitcoin lengthy positions. According to information from Coinglass, lengthy liquidations reached USD 75.8m on that day, the best stage in 12 days.

Leveraged BTC liquidations:

Source: Coinglass

Learn extra:
– Pressure on SEC Chair Rises as Even WSJ Accuses Gensler of ‘Holding Investors Hostage’ with Bitcoin ETF Stance 
– Cautious Bullishness in Bitcoin & Crypto Amid Warnings of Further Downsides

– Don’t Fear the Reaper: Why the Market Downtrend Is Good for Crypto
– Bitcoin Lifeboat, Long Recovery Road, & Exaggerated BTC Deaths: Saylor, CZ, and Professor Weigh In

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About the Author: Daniel