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Thursday’s short squeeze wiped out nearly $1 billion in leveraged positions as Bitcoin and Ethereum surged to multi-week highs. Bitcoin briefly crossed the $100,000 Bitcoin formed a new record high this week despite the highest ratio of short positions since September 2025. The rise in short positions indicate that traders are not buying In contrast to the growing interest in short Bitcoin funds, data shows a substantial $438 million withdrawal from a collection of 12 spot ETFs that directly invest in As short positions built up, institutions aggressively bought Ethereum ETF shares last week. CoinShares reported $790 million flowing into spot Ethereum funds as Institutional investor sentiment was “deeply negative” last week, according to the report, as short product inflows represented 75% of the total inflowsthe largest inflow on According to the report, institutional investors are shorting digital assets due to their negative sentiment. In addition, the inflows from these shorts represent 75 percent of Bitcoin (BTC) and Ethereum (ETH) are witnessing record inflows into short investment products. This development is most likely due to the

Bitcoin, Ethereum See Record Number of Short Investments Despite Price Surge

Bitcoin (BTC) and Ethereum (ETH) are witnessing record inflows into short investment products. This development is most likely due to the negative sentiment surrounding the current market conditions, especially with global economic uncertainty looming. According to the report, institutional investors are shorting digital assets due to their negative sentiment.

Despite the increasing number of short positions, both Bitcoin and Ethereum have shown resilience. Bitcoin briefly crossed the $100,000 mark this week despite the highest ratio of short positions since September 2025. This indicates a complex interplay between bearish sentiment and underlying market strength. The rise in short positions indicate that traders are not buying into the narrative of continuous upward momentum.

Thursday’s short squeeze wiped out nearly $1 billion in leveraged positions as Bitcoin and Ethereum surged to multi-week highs. This event highlights the inherent risk associated with shorting highly volatile assets like cryptocurrencies.

Ethereum ETF Sees Institutional Buying Amid Shorting Trend

As short positions built up, institutions aggressively bought Ethereum ETF shares last week. CoinShares reported $790 million flowing into spot Ethereum funds as Institutional investor sentiment was “deeply negative” last week, according to the report, as short product inflows represented 75% of the total inflowsthe largest inflow on record. This divergence suggests a segmented market, with some institutions betting against Ethereum while others are actively accumulating it.

Spot Bitcoin ETF Outflows Contrast Short Bitcoin Fund Growth

In contrast to the growing interest in short Bitcoin funds, data shows a substantial $438 million withdrawal from a collection of 12 spot ETFs that directly invest in Bitcoin. This outflow could be attributed to various factors, including profit-taking, concerns about regulatory headwinds, or a shift in investment strategies.

In addition, the inflows from these shorts represent 75 percent of the total inflow. The continued accumulation of short positions against both Bitcoin and Ethereum, despite their price volatility, underscores the bearish outlook held by a significant portion of institutional investors.

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