You are right this is very likely a Sprott Uranium Miners ETF driven allocation purchase due to BOE’s improved profile in the index.
Implications for Long-Term Holders
Even though this was passive inflow, the consequences are still strongly bullish for long-term investors:
• Increased ETF weight indicates BOE is now seen as a core uranium exposure globally.
• ETF holdings tend to be sticky unless the index methodology changes again.
• More BOE shares are now locked into long-only passive funds, reducing free float and making it harder for short-sellers to find borrowable shares.
Implications for Short Sellers
This creates a higher squeeze risk for shorts:
• ETF-driven demand is not price-sensitive — they buy regardless of valuation when rebalancing.
• If demand outpaces float (especially when large passive funds accumulate), short borrow becomes expensive or unavailable.
• ETFs do not lend shares directly, though their custodians might (if permitted), but institutional recall risk rises when free float shrinks.
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