So far in 2025, the most profitable ETF trades have come from betting against Ethereum.
Leveraged funds that short ETH have delivered staggering returns, with Bloomberg data showing gains of 247% and 219% for ProShares’ ETHD and T-Rex’s ETQ, respectively. Both ETFs use aggressive 2x inverse strategies, meaning they amplify ETH’s price moves in the opposite direction—adding extra volatility to already turbulent waters.
Ethereum itself has had a punishing year, plunging more than 50% as of mid-April. Bloomberg’s Eric Balchunas described the situation bluntly: it’s been “brutal” for Ethereum bulls.
Despite Ethereum’s dominance in total value locked—about $46 billion according to DeFiLlama—the network’s economic engine has stalled. Following its major Dencun upgrade last March, which aimed to lower transaction costs, Ethereum’s fee revenue cratered by roughly 95%. Layer-2 networks now process most transactions, but monetizing them has proven challenging.
In one week alone, Ethereum earned just over 3 ETH from activity on L2s like Arbitrum and Base. To return to pre-upgrade revenue levels, on-chain data suggests L2 volume would need to grow by more than 22,000 times.
Analysts now argue Ethereum’s long-term success depends not on fee generation, but on its efficiency as a data host for scaling solutions. Meanwhile, usage across smart contract platforms—including Ethereum and Solana—has slipped in Q1, as traders grow cautious in light of looming tariffs and rising geopolitical tensions under the Trump administration.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is passionate about questions of meaning. He is a fluent German speaker as well as He has been in the crypto space for more than three years and has an eye for spotting emerging trends in the world of digital currencies. Whether providing in-depth analysis or reporting on all topics on a daily basis, his deep understanding and enthusiasm for what he does makes him a valuable addition to the team.
Source: https://coindoo.com/ethereum-bears-win-big-as-short-etfs-dominate-2025-rankings/