Ether shorting ETFs yield 247%

Shorting Ethereum (CRYPTO:ETH) has proven to be the most successful ETF strategy in 2025, with two inverse ETFs delivering exceptional year-to-date (YTD) returns amid the cryptocurrency's sharp decline.

The ProShares UltraShort Ether ETF (ETHD) has emerged as the top-performing ETF in the U.S., boasting a staggering 247% YTD gain.

This fund is designed to deliver twice the inverse (-2x) of Ethereum's daily performance, effectively capitalising on the cryptocurrency’s downturn.

“The best performing ETF this year is the -2x Ether ETF ETHD, up 247%,” noted Bloomberg ETF analyst Eric Balchunas.

Closely following ETHD is the T-Rex 2X Inverse Ether Daily Target ETF (ETQ), which has achieved a YTD return of approximately 219%.

Unlike ETHD, ETQ tracks spot ether instead of an index, but both funds employ leveraged strategies to amplify returns based on Ethereum’s depreciation.

“Number two is the other -2x Ether ETF. Brutal,” Balchunas remarked.

Ethereum’s ether (ETH) has faced significant challenges in 2025, losing nearly 51% of its value since January.

Factors contributing to this decline include reduced fee revenues following the Dencun upgrade and broader market volatility.

Despite these setbacks, Ethereum remains a dominant blockchain network, with $46 billion in total value locked across decentralised finance platforms.

Inverse ETFs like ETHD and ETQ are high-risk investment vehicles that appeal to bearish investors seeking gains during market downturns.

These funds use financial derivatives to inversely track Ethereum's price movements, offering twice the volatility of the underlying asset.

As ETH continues to struggle, these ETFs have soared in performance.

At the time of reporting, the Ethereum (ETH) price was $1,643.09.