Investors have allocated over $11 million into a recently launched bitcoin exchange-traded fund (ETF) designed to profit when the price of the flagship cryptocurrency declines. The ETF is now the second-largest bitcoin-focused ETF in the U.S.

Goldman Sachs is reportedly looking to raise $2 billion from investors to buy up the assets of embattled cryptocurrency lender Celsius. The deal would allow investors to buy the lender’s assets at potentially big discounts in the event of a bankruptcy filing.

Bitcoin miners are finding it difficult to repay as much as $4 billion in loans backed by their equipment amid BTC’s price decline. Analysts say an increasing number of loans are underwater, as some of the mining equipment accepted as collateral halved in value.

Top stories in the Crypto Roundup today:

• Short Bitcoin ETF Rakes In $11 Million as Investors Bet Against BTC
• Goldman Sachs Said to Be Raising $2 Billion to Buy Celsius’ Assets
• Nearly $4 Billion in Bitcoin Miner Loans are Under Stress
• Top-Tier Exchanges’ Market Share Rose to 91.5% of Total Spot Volume in May

Short Bitcoin ETF Rakes In $11 Million as Investors Bet Against BTC

Investors have allocated over $11 million into a recently launched bitcoin exchange-traded fund (ETF) designed to profit when the price of the flagship cryptocurrency declines. The ETF is now the second-largest bitcoin-focused ETF in the U.S.

The ProShares Short Bitcoin Strategy (BITI) ETF has seen inflows of 544.2 BTC since launching, according to Vetle Lunde, an analyst at Arcane Research. The fund is designed to inverse BTC’s performance, meaning investors profit 1% when BTC falls 1%, minus management fees and expenses.

The ETF’s performance was lackluster on its opening day, but inflows soon surged to see its assets under management grow over 900 BTC. The ETF uses BTC derivatives to achieve its performance.

In terms of crypto ETFs trading in the U.S. by assets under management, the short ETF is only behind ProShares’ futures-based bitcoin ETF, BITO, which has the equivalent of 31,000 BTC in assets.

Goldman Sachs Said to Be Raising $2 Billion to Buy Celsius Asset

Goldman Sachs is reportedly looking to raise $2 billion from investors to buy up the assets of embattled cryptocurrency lender Celsius. The deal would allow investors to buy the lender’s assets at potentially big discounts in the event of a bankruptcy filing.

The U.S. banking giant is gauging interest and soliciting commitments from Web3 crypto funds, funds specializing in distressed assets, and traditional financial institutions with cash on hand.

Celsius had over $8 billion loaned out to clients and $12 billion in assets under management as of May of this year. On June 12, it abruptly announced it was halting withdrawals from its platform citing “extreme market conditions.”

The crypto lender has hired restructuring advisory firm Alvarez & Marsal and law firm Akin Gump Strauss Hauer & Feld to deal with its situation, while also enlisting investment bank Citigroup to advise on possible solutions, including the assessment of an offer from rival crypto lender Nexo.

People familiar with the matter have said both Citigroup and Akin Gump recommended Celsius file for bankruptcy.

Nearly $4 Billion in Bitcoin Miner Loans are Under Stress

Bitcoin miners are finding it difficult to repay as much as $4 billion in loans backed by their equipment amid BTC’s price decline. Analysts say an increasing number of loans are underwater, as some of the mining equipment accepted as collateral halved in value.

The $4 billion figure comes from Ethan Vera, co-founder of Seattle-based mining company Luxor Technologies. While few miners have defaulted so far, some have sold off BTC reserves, putting further pressure on the cryptocurrency’s price.

Some large mining firms are still enjoying decent profit margins, with their cost of production being around $8,000 per BTC. However, others estimate that total mining costs could rise to BTC’s current price.

Top-Tier Exchanges’ Market Share Rose to 91.5% of Total Spot Volume in May

Last month, Top-Tier exchanges’ spot volumes increase 14.4% to $1.8 trillion to now represent 91.5% of the total spot volume. Lower-Tier spot volumes increased 5.17% to $167 billion.

A daily volume maximum of $149 billion was traded on May 11, up 85.3% from the intra-month high in April. May’s intra-month high came as TerraUSD collapsed.

Read more in CryptoCompare’s latest Exchange Review.

State of the Crypto by Top Tier Exchange Volume

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