Svmuu News A group of crude oil traders made large short bets, wagering that oil prices would retreat from war-driven highs, but most have suffered heavy losses so far. Data shows that in March, ETF investors poured $977 million into the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), marking the fund's largest single-month inflow since its inception in 2008. SCO provides twice the inverse daily return of crude oil price movements. Despite the record inflow, SCO's total assets remain at just $970 million, lower than the total inflow for the entire month.
Rocky Fishman, founder of Asym 500, said, "This is a bet that 'the war ends soon'." The fund rose 8% after President Trump again hinted at a possible end to the Iran war, but it still fell 41% in March, marking its worst performance in nearly six years. However, short bets are only half the market picture, with long funds also setting records. The United States Oil Fund (USO) attracted approximately $700 million in March, its largest single-month inflow since the pandemic, while the United States Brent Oil Fund (BNO) drew $600 million, a record high. The market is highly divided, with leveraged funds hedging bets on both sides. (Jin10)