"For traders holding ProShares Ultra Ether ETF (ETHT), a 2x daily leveraged product tied to Ethereum's price, that decline has been far more punishing than simply owning ETH outright. Understanding what drives this fund's performance over the next 12 months comes down to two things: where crypto market sentiment is heading, and how the fund's daily rebalancing mechanic quietly erodes returns in choppy conditions."
"The VIX is currently at 29.49, up 48.5% over just the past week - a move that puts it at the 94.6th percentile of all readings over the past year. That kind of rapid acceleration in fear is a warning sign for risk assets like Ethereum."
"ETHT launched in June 2024 and has been in a steep decline since. The fund is currently priced around $14.63, down from $182.83 at inception. Year-to-date in 2026, the fund has shed 61%, reflecting both Ethereum's pullback from its late-2025 highs and the compounding losses that come with leveraged exposure during a sustained downtrend."
ETHT, a 2x daily leveraged Ethereum ETF launched in June 2024, has experienced severe losses, trading at $14.63 from its $182.83 inception price. Ethereum itself fell from $4,759 in late 2025 to approximately $2,013, opening 2026 at $3,000. The fund's performance is driven by two critical factors: crypto market sentiment and the fund's daily rebalancing mechanics, which erode returns during volatile, choppy market conditions. The CBOE Volatility Index (VIX) at 29.49, up 48.5% in one week and at the 94.6th percentile of annual readings, signals heightened investor fear and risk-asset selloffs, directly impacting leveraged Ethereum exposure.
Read at 24/7 Wall St.
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