Summary
- It said about $977 million flowed into the inverse crude oil ETF SCO over March alone, the largest monthly total on record.
- It noted that oil prices surged to $119 a barrel, sending SCO down about 41% and widening losses for investors betting on a short-term decline.
- It said upside pressure on oil prices could persist due to disruptions near the Strait of Hormuz, leaving a high-risk strategy betting on an 'early end to the war' facing headwinds.
Forecast Trend Report by Period
Investment flows betting on a decline in crude prices surged, but the market moved the other way, widening losses.
According to Walter Bloomberg on the 1st (local time), investors put about $977 million into the inverse crude oil ETF (SCO) over the month of March. That marked the largest monthly inflow on record.
The ETF is designed to profit when oil prices fall, but oil prices spiked on the back of the war, and the fund is said to have fallen about 41% instead.
The ETF briefly rose 8% on signs of easing tensions, but oil prices at one point climbed to $119 a barrel and are still holding in the $100 range.
In particular, with the possibility raised that upside pressure on oil may persist due to supply disruptions near the Strait of Hormuz, losses are continuing for investors who bet on a short-term decline.
The episode shows that a high-risk strategy betting on an 'early end to the war' is facing a headwind in the market.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
