If you look at the best-performing ETFs of 2025 so far, the top spots don’t go to AI or green energy funds. They go to something far more unusual: a short Ethereum ETF.
More specifically, the ProShares UltraShort Ether Strategy ETF (ETHD) and T-Rex 2X Inverse Ether Daily Target ETF (ETQ), both of which aim to deliver -2x the daily performance of Ethereum futures. According to Bloomberg ETF analyst Eric Balchunas, these funds are up over 200% year-to-date – the highest returns of any ETF available to U.S. investors right now:
That kind of return would usually be the stuff of breakout tech stocks or risky biotech plays. But this isn’t about a promising new sector. It’s about Ethereum collapsing. And that puts this win in a strange, uncomfortable place.
Why A Short ETF Is Leading the Pack
The math behind these ETFs is pretty straightforward. If Ethereum drops 5% in a day, a -2x ETF is designed to go up 10%. That leverage makes them risky – small daily losses in ETH can quickly turn into bigger ones for the ETF if the market goes the other way. But this year, it hasn’t.
Ethereum has been falling almost nonstop since January. Even with a 10% bump after Trump’s latest comments on tariffs, ETH is still sitting near $1,620. That’s not just a psychological low – it’s a technical one too, matching prices we haven’t seen since 2023.
Over the past 12 months, Ethereum is down more than 54%. The drop is even more painful when you consider that Ethereum finally got its ETF approval in May 2024 – a milestone that many believed would bring new money, more exposure, and a solid price floor.
It’s not just about the price in dollars. Ethereum is underperforming across the board. ETH/BTC is at a five-year low, and SOL/ETH is holding above 0.7 – close to the all-time high it hit a few months ago. Other major altcoins have at least stayed flat or posted small gains this year. Ethereum is the only one this deep in the red.
Can It Turn Around?
That’s the question everyone’s asking, but few are answering with confidence. The upcoming Pectra upgrade – which is expected to go live on May 7 – might be a turning point. If it launches smoothly and developers start building new tools around it, that could help shift sentiment.
But to make a real recovery, ETH doesn’t just need better tech. It needs people to believe in it again. That means sustained growth, better on-chain activity, and ideally, a price that stops falling. Until then, the short ETFs will keep working. And every green candle they print is another reminder that Ethereum still hasn’t found a bottom.
Read more: Ethereum Pectra Upgrade Launching on May 7th – Here’s What It Changes
