In January, the Grayscale Bitcoin Mini Trust ETF experienced a remarkable 187.1% increase in short interest, rising from 178,475 shares at the end of December to 512,485 shares as of January 15. This surge pushed the short-interest ratio to just 0.2 days of average trading volume, indicating a notable uptick in bearish positioning. Approximately 0.8% of the fund’s outstanding shares are now sold short, marking the highest proportion of shares shorted since the ETF’s launch in mid-2024 and highlighting growing skepticism among a subset of traders.

Despite the rise in short interest, institutional investors continue to build substantial positions in the Mini Trust ETF. During the past two quarters, Paragon Advisors added a new stake valued at roughly $25.9 million, SteelPeak Wealth committed around $30.5 million, and Ovata Capital deployed approximately $27.1 million into the fund. Meanwhile, Millennium Management increased its holdings by 25%, bringing its total to 2.5 million shares, and Emory University nearly doubled its position with a 91% boost to 1.02 million shares. In aggregate, hedge funds and other institutions now control 27.38% of the ETF’s float, underscoring continued confidence in Bitcoin exposure through this vehicle.