Leverage Hangover: Ether Short ETF Sees Mass Exodus as Volatility Bites
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The T-Rex 2X Inverse Ether Daily Target ETF, ticker ETQ, suffered a sharp reversal in investor sentiment on January 22, 2026, as the fund recorded outflows of $785,400. With total assets under management now standing at $1,357,602, the latest redemption wave represents a striking 57.85% of its AUM, underscoring how quickly capital can move in and out of leveraged crypto-linked products.
Such a large single-day pullback suggests traders may be unwinding bearish or hedged positions after an extended slide in Ether, or simply de-risking from leveraged structures amid heightened volatility. For a niche ETF like ETQ, the magnitude of the flow highlights its use as a tactical trading vehicle rather than a long-term holding, amplifying the impact of short-term sentiment shifts.
The related asset, ETH-USD, is currently trading at $2,644.68, having dropped 30.28% over the past three months. Despite this substantial drawdown, short-term technicals remain cautious, with the 1-day signal flashing Sell. The combination of persistent technical weakness in Ether and heavy outflows from an inverse leveraged ETF paints a picture of a market still struggling to find conviction—whether on the long or short side.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.