Leverage Cuts Both Ways: Ether Bear ETF Sees Over Half Its Assets Walk Out in a Day
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The T-Rex 2X Inverse Ether Daily Target ETF, ETQ, recorded a sharp outflow of $785,400 on January 22, 2026, a move that drained roughly 58.3% of its assets under management and left the fund with just $1.35 million in AUM. The scale of the redemption underscores how quickly sentiment can swing in leveraged, short-bias crypto products as traders reassess their conviction on Ether’s next move.
The related asset, ETH-USD, is currently trading at $2,719.08, down about 23.0% over the past three months. Despite that sizable retreat, the 1-day technical signal remains bearish, flashing a Sell reading. That combination—deep recent losses and a still-negative short-term setup—may suggest that some ETQ investors are locking in gains on successful inverse bets or reducing risk amid heightened volatility rather than positioning for a fresh leg down.
Such a large, single-day outflow relative to AUM is notable for a niche leveraged ETF, implying that a concentrated cohort of traders is actively managing exposure rather than passively riding Ether’s downturn. Whether this marks an inflection point in bearish Ether sentiment or simply profit-taking after a strong inverse run will hinge on how ETH’s price action evolves from here and whether liquidity returns to ETQ in coming sessions.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.