Defiance’s Leveraged Ethereum Income Fund Sees Heavy Outflows as Crypto Slump Deepens
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The Defiance Leveraged Long Income Ethereum ETF, ETHI, recorded sharp outflows of $687,612 on January 26, 2026, a sizable redemption that amounts to roughly 18.4% of its latest reported assets under management of $3.74 million. The move underscores mounting investor caution toward leveraged Ethereum income strategies amid renewed volatility in the underlying token.
The related asset, ETH-USD, is currently trading at $2,428.98, having shed about 30.6% over the past three months. The short-term technical picture remains fragile, with the 1-day signal flashing Sell, suggesting momentum traders are still positioning defensively rather than buying the dip.
For ETHI, the latest outflow represents more than a routine adjustment: nearly a fifth of the fund’s capital exited in a single day, a hefty vote of no confidence in leveraged exposure just as Ethereum struggles to regain its footing. While some long-term investors may see valuations as increasingly compelling, the combination of negative price momentum, leveraged risk, and income-distribution complexity appears to be driving short-term money to the sidelines.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.