The 2 best-performing exchange-traded funds (ETFs) year-to-date are uncovered to quick Ethereum (ETH) 2x leveraged positions.
Bloomberg senior ETF analyst Eric Balchunas shared on April 9 that the UltraShort Ether ETF (ETHD), managed by ProShares, surpassed 247% in year-to-date returns and registered practically $14 million in property underneath administration.
REX Shares’ T-Rex 2X Inverse Ether Day by day Goal ETF (ETQ) adopted carefully, with a 219.2% efficiency in the identical interval and $1.57 million in property.
Balchunas mentioned:
“The perfect performing ETF this 12 months is the -2x Ether ETF $ETHD, up 247%. #2 is the opposite -2x Ether ETF. I used to be positive it will be $UVIX (2x VIX), however that’s #3. Brutal.”
Ethereum worth reversal fuels inverse efficiency
Though the funds are designed for short-term directional publicity, the extended drawdown in Ether has created circumstances underneath which every day compounding results have amplified features for inverse leveraged merchandise.
Whereas dangerous over prolonged intervals as a consequence of path dependency, these mechanics have favored these funds in a sustained downward worth setting.
In keeping with Balchunas, this efficiency surpassed that of UVIX, a 2x leveraged VIX-linked ETF, which had been anticipated to prime the leaderboard however at present ranks third at 171.7% returns.
The outperformance of ETHD and ETQ coincides with a pointy correction in Ethereum’s worth because the starting of 2025.
As of April 9, ETH is down 50%, a correction that was softened after President Donald Trump paused for 90 days the tariffs for nations open to barter with the US. In the identical interval, the crypto market averaged a 48.5% correction, in accordance with Artemis information.
The efficiency is available in a 12 months when volatility and macroeconomic uncertainty have produced uneven circumstances throughout digital property, with leveraged inverse merchandise benefiting from directional bias over a number of periods.
Ethereum’s weak point has additionally diverged from Bitcoin’s (BTC) 12.4% year-to-date correction, suggesting extra resilience amid ETF inflows and institutional curiosity.
Moreover, the BTC/ETH pair reached an all-time low of 0.1855 BTC on April 9, sustaining a descending pattern that began in September 2022.
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