The iShares Ethereum Trust ETF (NASDAQ: ETHA) experienced a significant increase in short interest during December 2023. As of December 31, the total short interest reached 13,452,690 shares, reflecting a remarkable growth of 37% from the previous total of 9,822,189 shares recorded on December 15. This surge indicates rising bearish sentiment among investors, as approximately 7.5% of the ETF’s shares are now sold short.
Given the average daily trading volume of 33,775,413 shares, the short-interest ratio stands at 0.4 days. This metric suggests that, should current trends continue, it would take less than half a day for all shorted shares to be repurchased if investors choose to cover their positions.
Hedge Fund Activity Highlights Growing Interest
Recent activity among hedge funds indicates a notable interest in the iShares Ethereum Trust ETF. Several firms have either established new positions or expanded their holdings in the ETF during the third quarter of 2023. For instance, Private Wealth Management Group LLC acquired approximately $26,000 in shares, while Atlantic Union Bankshares Corp made a similar investment valued at around $26,000.
Activest Wealth Management displayed the most significant growth, increasing its holdings by 252.7%. After purchasing an additional 619 shares, the firm now owns 864 shares, valued at approximately $27,000. KERR Financial Planning Corp and Princeton Global Asset Management LLC also entered the market, with respective investments of about $28,000 and $31,000.
The diverse engagement from these hedge funds underscores a growing recognition of the ETF’s potential amidst the evolving cryptocurrency landscape.
Current Market Performance
As of the latest trading session, shares of iShares Ethereum Trust ETF saw a slight increase of 0.2%, reaching a price of $24.88. The trading volume for the day was 28,958,231 shares, in comparison to the average volume of 38,844,113. The ETF’s performance has fluctuated significantly over the past year, with a 12-month low of $10.99 and a high of $36.80.
The fund, launched on July 24, 2024, operates under the management of BlackRock. It primarily invests in long positions in Ethereum and short positions in U.S. dollars, aiming to track the spot price of Ether while minimizing expenses and fees.
With the increase in short interest and the active involvement of hedge funds, the iShares Ethereum Trust ETF is positioned as a focal point in the cryptocurrency investment sector. Investors will be keen to monitor how these trends unfold in the coming months as the market continues to evolve.
