Ethereum Income ETF Sees Sharp Outflows as Traders Cut Risk Exposure
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The Defiance Leveraged Long Income Ethereum ETF, ETHI, recorded significant investor outflows on January 26, 2026, with $687,612 exiting the fund. The move represents roughly 18.39% of the ETF’s latest reported assets under management (AUM) of $3,738,840, underscoring a notable shift in sentiment toward leveraged Ethereum income strategies.
Such a sizeable single-day redemption, relative to the fund’s overall size, suggests investors are becoming more cautious about exposure to both Ethereum price volatility and yield-focused, leveraged products. In a market where liquidity can be thin for niche ETFs, a nearly one-fifth reduction in AUM in one session may also impact trading spreads and future positioning by market makers.
The related asset, ETH-USD, is currently trading at $2,719.08, having declined about 23.01% over the past three months. Short-term momentum remains negative, with a 1-day technical signal of Sell, reinforcing the risk-off tone around Ethereum-linked products.
Together, the sustained three-month drawdown in Ethereum and the abrupt pullback in ETHI’s capital base highlight how quickly leveraged and income-oriented crypto ETFs can see flows reverse when market conditions deteriorate. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.