Nearly Half of Inverse Ether ETF’s Capital Exits in a Single Day as Traders Hit the Brakes

Inverse Ether ETF Sees Nearly Half Its Capital Walk Out as Traders Reassess Crypto Downturn

The T-Rex 2X Inverse Ether Daily Target ETF, ETQ, registered a sharp outflow of $1,013,416 on December 19, 2025, wiping out nearly 45% of its assets under management in a single day. The leveraged inverse Ether product now oversees just $2,254,091, underscoring how quickly capital can rotate out of niche crypto-linked strategies when sentiment shifts or risk tolerance tightens.

The exodus is notable given ETQ’s mandate: it seeks to deliver twice the inverse of Ether’s daily performance, making it a potential refuge for traders betting against the world’s second-largest cryptocurrency. Such a large drawdown in AUM suggests that a critical mass of investors may have either taken profits on prior bearish positions or lost conviction in further downside, choosing to de-risk rather than remain exposed to amplified short-Ether dynamics.

The related asset, ETH-USD, is currently trading at $3,005.02, down roughly 31% over the past three months. Despite that slump, short-term signals remain negative, with a 1-day technical stance flashing Sell. The combination of sustained medium-term weakness in Ether’s price and fresh selling signals might have been expected to support inflows into an inverse ETF like ETQ. Instead, investors appear increasingly cautious about using leveraged bearish vehicles amid volatile conditions, potentially preferring more straightforward exposure or moving to the sidelines entirely.

The latest outflow highlights a broader theme in the crypto-derivatives ETF space: when volatility rises and trends become less predictable, even products designed to profit from declines can see capital flee as traders focus on capital preservation over tactical bets. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.