The top-performing exchange-traded funds (ETFs) so far this year are those that bet against Ethereum (ETH) with 2x leveraged short positions.
On April 9, a senior analyst from Bloomberg specializing in ETFs revealed that ProShares’ UltraShort Ether ETF (ETHD) has increased over 247% in returns year-to-date, accumulating nearly $14 million in assets under management.
Following closely behind is REX Shares’ T-Rex 2X Inverse Ether Daily Target ETF (ETQ), which has achieved a 219.2% return during the same timeframe, with $1.57 million in assets.
The analyst noted:
“This year’s top ETF performer is the -2x Ether ETF $ETHD, which is up 247%. In second place is the other -2x Ether ETF. I expected $UVIX (2x VIX) to be up there, but it’s currently in third place at 171.7%. Quite a surprise.”
Ethereum price decline boosts inverse performance
While these funds are intended for short-term directional trading, the ongoing decrease in Ether’s value has created circumstances that have enhanced daily compounding returns for these inverse leveraged instruments.
Though they come with risks over longer durations due to their path dependency, these factors have worked in favor of these funds during an extended price decline.
The analyst mentioned that the performance of ETHD and ETQ has outpaced UVIX, a 2x leveraged ETF linked to the VIX, which was anticipated to lead but is now in a distant third place with 171.7% returns.
This exceptional performance aligns with a significant drop in Ethereum’s price that has occurred since the start of 2025.
As of April 9, ETH has experienced a 50% decrease, a correction that was somewhat alleviated after a pause in tariffs for countries willing to negotiate with the U.S. initiated by President Donald Trump. During the same time frame, the overall cryptocurrency market saw an average correction of 48.5%, according to Artemis data.
This performance occurs in a year characterized by volatility and macroeconomic uncertainty, resulting in uneven conditions across digital assets, with leveraged inverse products gaining from a directional bias over several trading sessions.
The decline in Ethereum’s value has also contrasted with Bitcoin’s (BTC) 12.4% decrease so far this year, which appears to indicate more resilience amidst ETF inflows and growing institutional interest.
Additionally, the BTC/ETH pair reached an all-time low of 0.1855 BTC on April 9, continuing the downward trend that began in September 2022.