Investors Tap the Brakes on Ether Bears as ProShares’ Short ETF Sees Nearly 6% AUM Exit

Short Ether Bets Unwind as ProShares’ Leveraged Bear ETF Sees Heavy Outflows

ProShares UltraShort Ether ETF, ticker ETHD, recorded a sharp outflow of $3.97 million on January 02, 2026, as investors pulled capital from the bearish Ether vehicle. With assets under management now at about $66.68 million, the single-day redemption amounted to roughly 5.95% of the fund’s AUM, signaling a meaningful shift in positioning among traders who had been betting against the world’s second-largest cryptocurrency.

The move suggests that a segment of the market is taking profits or reducing conviction in further downside for Ether, even as the underlying asset remains under pressure. Short, leveraged products like ETHD are often used tactically by sophisticated traders; when flows reverse this sharply, it can hint at changing sentiment or a recalibration of risk rather than a simple retail-driven swing.

The related asset, ETH-USD, is currently trading around $3,103.82, having shed roughly 29.45% over the past three months. Despite that steep decline, the short-term technical backdrop is more nuanced: the 1-day technical signal stands at Hold, reflecting a market that appears to be consolidating rather than capitulating, as traders weigh macro conditions, regulatory headlines, and the broader risk-on/risk-off environment.

In this context, the sizeable outflow from ETHD may reflect expectations that Ether’s downside is becoming more limited in the near term—or at least that volatility could shift in both directions, making aggressive short exposure less appealing. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.