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Bitcoin Short-Seller Profits Jump by 50% in June Amid Meltdown

  • Short sellers target GBTC, BITO amid rout for cryptocurrencies
  • ETF tracking the inverse of Bitcoin futures has seen inflows
Bloomberg business news
Bitcoin Jumps Above $22,000 Amid Broad Crypto Rally

A dramatic fall in the world’s largest Bitcoin trust has been a godsend for its haters.

Those betting against Grayscale Investments’s Bitcoin Trust, or GBTC, have seen a nearly 50% return from the start of June to mid-July, the second-best showing for any exchange-traded fund over that stretch, according to Ihor Dusaniwsky, head of predictive analytics at S3 Partners. The average short interest on the trust is $87 million. Its rank on a list of most profitable US ETF shorts clocks in behind only a leveraged semiconductor product. (GBTC technically isn’t an ETF but has been lumped into the list as a point of comparison, and because many treat it as if it were one, said Dusaniwsky.)