Two exchange-traded funds (ETFs) that allow investors to bet against Ethereum with leverage have emerged as best performers year-to-date (YTD). Bloomberg Senior ETF analyst Eric Balchunas shared this on X, noting that he was not expecting it.

According to Bloomberg data, the two ETFs, ProShares Ultrashort Ether ETF (ETHD) and T-Rex 2x Inverse Ether Daily Target ETF (ETQ), are up 247.30% and 219% YTD, respectively. The 2x Long VIX Futures ETFs, which Balchunas expected to come first third.

Balchunas said:

“The best performing ETF this year is the -2x Ether ETF SETHD, up 247%. #2 is the other -2x Ether ETF. I was sure it would be SUVIX (2x VIX), but that’s #3. Brutal.”

Although the two ETH ETFs are not directly shorting Ethereum but instead use ETH futures contracts to bet against the asset, their high-flying performance highlights the token’s struggles. The token already has one of its worst years on record, with an over 50% decline YTD and price at unseen levels since 2022.

Interestingly, the two funds have minimal assets under management (AUM) with ETHD having $13.98 million in AUM after an outflow of $6.97 million this year. ETQ is no better, with only $1.57 million AUM despite a slightly positive net flow.

The two funds are also down on a long-term basis. ETQ has had a negative 3.56% performance in six months, while ETHD is down  18.09%.

Ethereum takes a break from struggles after a pause in tariffs

Meanwhile, ETH took a break from its struggles with a more than 10% surge in value after  President Donald Trump announced a pause on tariffs for all countries except China for 90 days. Following the news, ETH went from $1,440.82 to $1,687.18, sparking speculation of a rebound.

Unsurprisingly, the short ETH ETFs also tanked in value, with ETHD dropping 24% to $55.60 and ETQ falling 24.66% to $23.59. However, they remain up YTD, and the outlook for ETH is still relatively negative, with the token already shedding some of its recent gains.

Despite its double-digit percentage gains, ETH remains well below $2,000, and positive sentiments are very slim. Part of the factors behind the worsening sentiment is the capitulation of some long-term holders.

According to blockchain analysis platform Lookonchain, one whale who has held ETH since it was worth $8 recently dumped 10,702 ETH for $16.86 million after two years of being dormant. The address has a history of selling ETH during major dips, which adds to the growing ETH sell-0ff.

Nevertheless, some market experts believe the selloffs by long-term holders could represent a good buying opportunity. Crypto analyst Ali Martinez believes this could be a good entry point for those who want to accumulate.

He said:

 “Long-term #Ethereum $ETH holders have entered “capitulation” mode. For contrarians, this could signal a prime accumulation zone from a risk-reward standpoint.”

His view aligns with that of others who believe ETH is already at a bottom and has upcoming bullish events that could lead to a price increase. Crypto influencer Ted Pillows believes that the Pectra upgrade, ETH staking ETFs, and tokenization booms could cause ETH prices to increase significantly.

However, many believe the current market uncertainty does not favor a rebound, and ETH could drop lower. CryptoQuant analyst Mac_D has identified $1,290 as the next major support level for ETH, as this is where whales are holding over 100,000 ETH.

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