As the June 23 vote on European Union membership approaches, traders are increasing bearish bets on the biggest U.S exchange-traded fund tracking Britain’s shares. Short interest on the iShares MSCI United Kingdom ETF jumped eightfold in the past two months, according to data compiled by research firm Markit. Bank of America Corp. recommended last week that investors consider hedging as the risk of a Brexit isn’t evenly priced in.

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