Bitcoin ETF Short Positions Hit Record High as Investors Turn Defensive

U.S. bitcoin ETFs allow traditional investors to gain exposure to BTC through the securities market, making positions in leveraged inverse products a gauge of risk appetite. Research and brokerage firm K33 said geopolitical risks involving Iran, weak crypto prices and concerns about quantum computing have pushed investors toward a more defensive stance. However, an excessive concentration of short positions could also fuel a short squeeze and help the market form a bottom.

K33 Head of Research Vetle Lunde said on April 2, 2026, that leveraged short exposure to bitcoin ETFs had reached 9,012 BTC, up 22% in several days and the second-highest level on record. By April 15, the 30-day average funding rate had remained negative for 46 consecutive days, while bitcoin was still 41% below its roughly $126,000 peak on October 6, 2025. Trading volume and volatility were expected to ease around Easter.