The Procure Space ETF UFO has seen a dramatic shift in its lending market over the past week. Short interest has climbed to 40.4% of free float — and availability has collapsed with it.
Short interest sat near 5% of float as recently as late June. It now stands at 40.4%. That is an increase of more than 700% over the past month, with 13.3% added in the last week alone.
The speed of that build is unusual for an ETF. UFO tracks a basket of global space economy companies — satellite operators, launch providers, and space technology firms. Its relatively small float means position changes from a handful of active participants can move the needle sharply.
The surge in short demand has hit the lending pool hard. Availability has fallen to just 34.8% — meaning for every three shares already lent out, fewer than two remain available to borrow. A week ago, availability stood near 68%. Four weeks ago it was above 1,200%.
That is a near-total depletion of the lending cushion in under a month.
Cost to borrow has risen 64% in one week, reaching 3.16%. The borrow rate had been volatile but ranged between roughly 1.8% and 4.0% for most of June and July. The current move puts it toward the upper end of that range, reflecting tighter supply rather than any extreme premium — yet.
The 52-week low for availability on this name was 7.6%. That reading suggests the lending market can get considerably tighter from here if demand for borrows continues.
One notable divergence: the options market is not aligned with the bearish short positioning. The put/call ratio is 0.24 — well below its 20-day average of 0.37. The PCR has fallen sharply over the past four weeks, from above 0.50 in early July to current levels near the 52-week low of 0.07.
That reads as call-heavy positioning. It does not corroborate the short sellers' thesis, at least in the options market.
The ORTEX short score for UFO stands at 63.4 — elevated, and broadly stable over the past two weeks. It has ranged between 58.7 and 63.5 in that window. A score in this range reflects meaningful short-side pressure relative to lending dynamics.
What to watch: Availability is the key variable. At 34.8%, there is still borrowable supply. But if demand for shorts continues at the current pace and availability drops toward the 10–20% range, cost-to-borrow pressure would likely intensify materially. The divergence between short positioning and options sentiment is worth monitoring for resolution.
See the live data behind this article on ORTEX.
Open UFO on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
