Short Ether Bets Unwind as ProShares UltraShort ETF Sees Notable Outflows
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The ProShares UltraShort Ether ETF, ETHD, recorded sizeable redemptions on January 2, 2026, with investors pulling $3,967,744 from the fund. The outflow represents roughly 5.49% of its latest reported assets under management (AUM) of $72,321,656, signaling a meaningful shift in positioning among traders using the vehicle to bet against Ether.
Such a sizable move in a single session suggests that a portion of the market may be scaling back bearish or hedged exposure to Ether, even as the underlying token remains under pressure. As a leveraged inverse product, ETHD tends to attract short-term, tactical flows, and a nearly 5.5% reduction in AUM via outflows can indicate either profit-taking on successful short positions or waning conviction in further downside.
The related asset, ETH-USD, is currently trading at $3,196.44. Over the past three months, Ether has dropped about 26.61%, a correction that has likely benefited holders of inverse products like ETHD. However, the 1-day technical signal on Ether now stands at Hold, reflecting a more neutral near-term stance after a period of pronounced weakness.
The combination of heavy outflows from a short-oriented ETF and a neutral technical backdrop in Ether may hint at a pause in the bearish narrative, as traders reassess whether the recent drawdown has already priced in much of the bad news. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.