Short Ether Bets Lose Steam as ProShares Inverse ETF Sees Notable Outflows
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The ProShares UltraShort Ether ETF, ETHD, recorded net outflows of $1,445,238 on January 23, 2026, trimming investor exposure to leveraged downside bets on Ethereum. With total assets under management now standing at approximately $81.07 million, the latest redemption wave represents about 1.78% of the fund’s AUM, a meaningful one-day pullback for a niche inverse product.
The move comes against a backdrop of renewed volatility in the underlying asset, Ethereum. The related asset, ETH-USD, is currently trading around $3,011.22, having fallen roughly 26.16% over the past three months. Despite that steep decline, the short-term setup remains fragile, with the 1-day technical signal flashing a cautious Sell.
Outflows from ETHD may suggest that some traders are locking in gains from earlier bearish positioning or reducing risk after a sharp downside move in Ether, rather than signaling a broad shift to outright bullishness. Inverse and leveraged ETFs often see rapid rotations as sophisticated investors recalibrate exposure to daily price swings, and even modest changes in flows can hint at changing conviction levels in the short-term direction of the crypto market.
Still, the combination of sizeable redemptions from a bearish vehicle and an extended three-month drawdown in ETH-USD could indicate that some market participants view the current levels as less attractive for fresh short exposure. As Ethereum continues to grapple with macro headwinds, risk sentiment, and evolving narratives around network upgrades, positioning in products like ETHD will remain a barometer of speculative appetite on the downside.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.