MAXI Short Interest Plummets 96.5% in December — What Investors Should Know
Short interest in Simplify Bitcoin Strategy PLUS Income ETF (NASDAQ:MAXI) plunged 96.5% in December to 2,549 shares — here's what investors need to know.
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Short interest in the Simplify Bitcoin Strategy PLUS Income ETF (NASDAQ:MAXI) saw a dramatic decline in December, falling 96.5% from 72,046 shares on December 15 to just 2,549 shares as of December 31. That drop leaves roughly 0.1% of the ETF’s shares sold short, signaling a meaningful shift in trader sentiment around this bitcoin-focused income ETF.
Why the sudden fall in short interest matters
A steep decline in short interest can reflect several market dynamics. Traders who were betting against MAXI may have covered their positions, reducing bearish pressure. The reduction also lowers the odds of a short squeeze — a rapid price spike triggered by forced short covering — because so few shares remain sold short. For investors tracking bitcoin strategy ETFs, the change in MAXI’s short interest is a notable data point in gauging market conviction.
Possible reasons behind the decline
The exact drivers for the short interest drop aren’t confirmed, but common causes include changes in bitcoin volatility, ETF inflows or outflows, rebalancing by institutional holders, or shifts in risk appetite after news or regulatory developments. Simplify Bitcoin Strategy PLUS Income ETF combines bitcoin exposure with an income component, and shifts in yield-seeking behavior or bitcoin price expectations can influence how much traders are willing to short the fund.
What investors should consider
If you hold or follow MAXI, keep an eye on three things: bitcoin price action, ETF asset flows, and ongoing short interest reports. Low short interest reduces volatility risk tied to short-covering, but it doesn’t eliminate price risk linked to bitcoin itself or to changes in the ETF’s strategy. Use short interest as one input among many — including fees, holdings, and your risk tolerance — when evaluating exposure to a bitcoin income ETF.
Bottom line
The December plunge in MAXI’s short interest to 2,549 shares (about 0.1% of shares) signals diminished bearish bets and lower short-squeeze risk. Investors should monitor market-moving factors around bitcoin and ETF flows to understand whether this decline is temporary or part of a longer-term trend.
Published on: January 15, 2026, 4:05 pm
