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Two ETFs designed for shorting Ether with 2x leveraged person been 2025's apical performers truthful far, according to Bloomberg Intelligence analysts.
Betting against Ether has been the champion performing speech traded money (ETF) strategy truthful acold successful 2025, according to Bloomberg expert Eric Balchunas.
Two ETFs designed to instrumentality two-times leveraged abbreviated positions successful Ether claimed (ETH) archetypal and 2nd spot successful a Bloomberg Intelligence ranking of the year’s top-performing funds, Balchunas said successful a station connected the X platform.
In the year-to-date, ProShares UltraShort Ether ETF (ETHD) and T Rex 2X Inverse Ether Daily Target ETF (ETQ) are up astir 247% and 219%, respectively, Bloomberg Intelligence information showed.
The implications for Ether are “brutal,” Balchunas said. Ether itself is down astir 54% year-to-date connected April 11, according to Cointelegraph’s marketplace data.
Both ETFs usage fiscal derivatives to inversely way Ether’s show with doubly arsenic overmuch volatility arsenic the underlying cryptocurrency. Leveraged ETFs bash not ever perfectly way their underlying assets.
Source: Eric Balchunas
Related: Ethereum fees poised for rebound amid L2, blob uptick
Weak gross performance
With astir $46 cardinal successful full worth locked (TVL), Ethereum is inactive the astir fashionable blockchain network, according to data from DefiLlama.
However, its autochthonal token show has sputtered since March 2024, erstwhile Ethereum’s Dencun upgrade — designed to chopped costs for users — slashed the network’s interest revenues by astir 95%.
The upgrade kept the network’s revenues depressed, mostly due to the fact that of difficulties monetizing its layer-2 (L2) scaling chains, which big an progressively ample information of transactions settled connected Ethereum.
“Ethereum’s aboriginal volition revolve astir however efficaciously it serves arsenic a information availability motor for L2s,” arndxt, writer of the Threading connected the Edge newsletter, said successful a March X post.
Ethereum’s TVL. Source: DeFiLlama
In the week ending March 30, Ethereum earned lone 3.18 ETH from transactions connected its layer-2 chains, specified arsenic Arbitrum and Base, according to data from Etherscan.
To afloat retrieve Ethereum’s highest interest revenues from earlier the Dencun upgrade, L2's transaction volumes would request to summation much than 22,000-fold, according to an X post by Michael Nadeau, laminitis of The DeFi Report.
Meanwhile, astute declaration platforms — including Ethereum and Solana — suffered across-the-board declines successful usage during the archetypal 4th of 2025, plus manager VanEck said successful an April report.
The diminished enactment reflects cooling marketplace sentiment arsenic traders brace for US President Donald Trump’s sweeping tariffs and a looming commercialized war.
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