CoinShares (CNSRF) Short Interest Plummets 99.8% in December: What Investors Should Know

CoinShares (CNSRF) short interest plunged 99.8% in December to 15 shares. Learn what this drop, low days-to-cover and trading volume mean for investors.

CoinShares International Limited (OTCMKTS:CNSRF) experienced a dramatic decline in short interest in December, a move that could reshape market sentiment for this thinly traded OTC stock.

As of December 31, short interest in CoinShares stood at just 15 shares, down 99.8% from the December 15 total of 8,300 shares. With an average daily trading volume of roughly 54 shares, the days-to-cover ratio is approximately 0.28 days (15 divided by 54). That extremely low ratio reflects how quickly any remaining short positions could theoretically be covered based on recent trading activity.

What this change means for investors depends on context. A sharp reduction in short interest often signals that bearish traders have closed positions, potentially reducing downward pressure on the stock. Lower short exposure also diminishes the immediate risk of a large short squeeze, since the remaining short positions are small relative to daily volume. However, the significance of the move is tempered by CoinShares’ overall low liquidity and OTC listing, which can amplify price swings even with modest share flows.

For traders and investors watching CNSRF, a few practical takeaways:
- Monitor volume and filings: With tiny average volume, even small trades can move the price. Keep an eye on trading volume and any regulatory filings that might explain position changes.
- Watch for news catalysts: Rapid changes in short interest can follow corporate developments, macro shifts, or investor-led campaigns. Verify whether any news coincided with the coverage.
- Consider market structure: OTC-listed stocks often have limited transparency and liquidity. That environment increases volatility and risk, making careful position sizing essential.

In short, the 99.8% drop in CoinShares’ short interest is notable but should be evaluated alongside liquidity, news flow, and broader market context. For many investors, the biggest takeaway is that thin trading volumes and OTC status mean small flows can create outsized price moves—so diligence and caution remain key.

This article is for informational purposes and does not constitute investment advice. Always do your own research before making trading decisions.

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