Short Sellers Step Back: Outflows Hit ProShares UltraShort Ether ETF as Traders Reassess Downside Bets

Short Sellers Step Back: Outflows Hit ProShares UltraShort Ether ETF as Traders Reassess Downside Bets

The ProShares UltraShort Ether ETF, ETHD, saw notable outflows on January 09, 2026, with investors pulling $1,344,723 from the fund. The move trims its assets under management to $71,030,660, meaning roughly 1.9% of the ETF’s capital base shifted out in a single session—a meaningful vote of reduced conviction in leveraged bearish exposure to Ether.

Such redemptions in an inverse, leveraged product can signal that traders are locking in profits on prior downside moves or stepping away from aggressive short positions. With nearly 2% of AUM exiting in one day, the flows underscore a recalibration of risk among sophisticated investors who use ETHD primarily as a tactical hedge or speculative vehicle rather than a long-term holding.

The related asset, ETH-USD, is currently trading around $3,363.28, down about 17.6% over the past three months—a drawdown that would typically benefit a bearish ETF like ETHD. Yet the near-term tone around Ether has brightened: the 1-day technical signal on the token now screens as a cautious positive, flashing Buy. This improving technical backdrop may be encouraging traders to unwind leveraged short exposure, contributing to the observed outflows.

Viewed together, the data suggest that while Ether’s medium-term performance remains weak, short-term sentiment is turning, prompting investors to take risk off the short side rather than add fresh downside bets via ETHD.

For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.