So far, the bet against Ether has been the most efficient exchange fund strategy (ETF) in 2025, according to Bloomberg analyst Eric Balchunas.
Two ETFs designed to take short positions twice in ether claimed (ETH) first and second in a Bloomberg Intelligence of the most efficient funds of the year, Balchunas said in an article on the X platform.
On the date of the start of the year, the ultrashort Ether ETF (ETHD) and T Rex 2x Target Ether Target (ETQ) proshares increased by around 247% and 219%, Bloomberg Intelligence has shown.
The implications for ether are “brutal,” said Balchunas. The ether itself is down approximately 54% for the start of the year on April 11, according to Cointelegraph market data.
The two ETFs use financial derivatives to follow in conversely Ether’s performance with twice as much volatility as the underlying cryptocurrency. The lever FNBs do not always follow their underlying assets perfectly.
Source: Eric Balchunas
In relation: Fresh Ethereum ready for the rebound in the middle of L2, Blob Uptick
Low income performance
With around $ 46 billion of total locked value (TVL), Ethereum is still the most popular blockchain network, according to Defilma data.
However, its native token performances have flouted since March 2024, when the Dencun d’Ethereum upgrade – designed to reduce costs for users – has reduced network costs by around 95%.
The upgrade has maintained depressed network income, largely due to difficulty monetizing its layer 2 (L2) scaling channels, which host an increasingly large part of the transactions set to Ethereum.
“The future of Ethereum will revolve around the efficiency of its data availability engine for L2S,” said Arndxt, author of The Threading On The Edge Newsletter, in a post by March X.
Ethereum TVL. Source: Defillama
During the week ending on March 30, Ethereum only obtained 3.18 ETH of transactions on its layer 2 channels, such as arbitrum and base, according to data from Etherscan.
To completely recover income from Ethereum’s advanced costs before Dencun upgrade, L2 transaction volumes are expected to increase more than 22,000 times, according to an X post by Michael Nadeau, founder of the DEFI report.
Meanwhile, intelligent contract platforms – including Ethereum and Solana – have dropped in use in the first quarter of 2025, said Vaneck, director of assets, in an April report.
The decrease in activity reflects the feeling of cooling on the market while traders are preparing for the radical prices of the American president Donald Trump and an imminent trade war.
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