Ethereum Income ETF Sees Sharp Outflows as Traders Bail on Leveraged Long Bets
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The Defiance Leveraged Long Income Ethereum ETF, ETHI, recorded significant outflows of $687,612 on January 26, 2026, a move that drained roughly 18.3% of its latest reported assets under management (AUM) of $3.75 million. The sizable redemption underscores mounting investor caution toward leveraged Ethereum exposure after a bruising quarter for the underlying token.
The related asset, ETH-USD, is currently trading at $2,937.58, having dropped about 25.0% over the past three months. Short‑term momentum remains weak, with the 1‑day technical signal flashing Sell, reflecting persistent downside pressure and limited dip-buying appetite.
The combination of leveraged long positioning and a declining Ethereum price appears to be amplifying risk aversion among ETF holders. Outflows of nearly a fifth of AUM in a single day suggest that investors are either taking losses and stepping to the sidelines or rotating into less volatile crypto exposure as market volatility stays elevated.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.