Short Ether ETF Sees Nearly 9% of Assets Walk Out as Traders Rethink Bearish Bets
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The ProShares Short Ether Strategy ETF, SETH, recorded sizeable outflows on January 16, 2026, with investors pulling $752,596 from the fund. The redemption wave shaved almost 9% off its asset base, leaving the ETF with $8.37 million in assets under management (AUM), a notable vote of reduced conviction in short-side Ether exposure.
The move is striking given that the ETF is designed to benefit when Ether prices fall. The latest outflow suggests that, despite Ether’s recent weakness, some traders may be locking in gains on successful bearish positions or stepping aside from leveraged downside exposure amid rising uncertainty about the next leg in crypto markets.
The related asset, ETH-USD, is currently trading around $2,952, having dropped roughly 22.7% over the past three months. Yet, near-term momentum remains negative: the 1-day technical signal is flashing a Strong Sell, underscoring lingering selling pressure even as short-focused investors appear less eager to maintain or add to bearish ETF positions.
This divergence—ongoing technical weakness in Ether alongside notable outflows from a short Ether strategy—highlights an emerging split in sentiment: chart-based indicators still favor the downside, while ETF flow data hints that some market participants are increasingly reluctant to press the short trade further.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.