ETHT: 2x Ether ETF, Up Over 100% In The Past Month

Summary ETHT offers 2x daily leveraged exposure to ether, making it a highly speculative tool for short-term momentum trading, not long-term investing. The ETF structure provides regulated, transparent access to ether futures, reducing risks of exchange fraud compared to direct crypto trading. Due to extreme volatility and drawdowns, investors can gain or lose capital rapidly with ETHT. ETHT is best used with clear entry and exit points by sophisticated traders seeking amplified ether exposure, not for buy-and-hold strategies. Thesis Cryptocurrencies used to be a fringe market traded on specific exchanges that occasionally blew up . Nowadays, crypto is an established asset class that has permeated the traditional investment ecosystem, and retail investors have access to crypto via exchange-traded funds. Not only can one buy ether via an ETF now, but one can leverage up via the advent of leveraged ETFs in the space. In today’s article, we are going to discuss exactly such a fund, namely the Proshares Ultra Ether ETF ( ETHT ). We are going to go through the fund’s structure and history and highlight for investors what the name does and why it is purely a speculative tool. Crypto in the ETF format The crypto asset class has been historically plagued by many scandals, such as the Mt. Gox and FTX occurrences, where investors lost significant amounts of money. The transitioning to traditional finance ensured the checks and balances that have been refined for many years now apply to cryptocurrencies such as ether. Investors using ETHT for ether exposure can rest assured that the framework for their purchase is tried and tested, and in fact, as we shall see in the holdings section, the fund has ether futures as holdings, thus cutting out any possibilities of exchange-related fraud. What does the fund actually do? Now let us take a look at the fund objective: This ProShares ETF seeks daily investment results that correspond, before fees and expenses, to 2x the daily performance of its underlying benchmark, the Bloomberg Ethereum Index. The Index is designed to measure the performance of a single ether traded in USD. The Index is constructed and maintained by Bloomberg Index Services Limited. While the Fund has a daily investment objective, you may hold Fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance. The name aims to provide the 2x daily performance of ether. While on crypto dedicated platforms investors can easily obtain leverage, the ETF asset class needs dedicated funds for enhanced returns. And ETHT is exactly such a fund. Please note that, just like any leveraged instrument, the fund aims to provide a 2x return only on a daily basis: For any holding period other than a day, your return may be higher or lower than the Daily Target. These differences may be significant. Smaller index gains/losses and higher index volatility contribute to returns worse than the Daily Target. Larger index gains/losses and lower index volatility contribute to returns better than the Daily Target. The above is the standard disclosure regarding leveraged names, and investors should always read the following from FINRA : Most leveraged and inverse ETFs reset each day, which means they are designed to achieve their stated objective on a daily basis. With the effects of compounding, over longer timeframes the results can differ significantly from their objective. Please see Regulatory Notice 09-31 and the SEC/FINRA Investor Alert for illustrations of how these discrepancies can occur. Because they reset each day, leveraged and inverse ETFs typically are inappropriate as an intermediate or long-term investment. They may be appropriate, however, if recommended as part of a sophisticated trading or hedging strategy that will be closely monitored by a financial professional. However, a registered representative must carefully address the question of how to engage in these strategies in a manner consistent with the suitability rule. When to use it Just like regular equities or commodities funds, the ether ecosystem in the ETF format consists of regular 1x funds and now a 2x instrument: Ether 1x ETF: iShares Ethereum Trust ETF ( ETHA ) Ether 2x ETF: Proshares Ultra Ether ETF Speculative investors who want to enhance their exposure to the asset class for a very short period of time can get access to a larger notional via a leveraged fund such as ETHT. At the end of the day, the ETF ensures that an investor with the same $100 of capital can get 2x the returns for ether. A very speculative and volatile asset class We are not going to discuss the merits of ether as an asset class in this article, but we are merely going to point out that it is a very, very speculative and volatile asset class. Let us look at some analytics for the non-leveraged ETHA ETF first: Annualized volatility: 75% 1-year drawdown profile: -70% Unleveraged ether is highly, highly speculative; thus, 2x leveraged ether is the same but on steroids. Investors need to be aware they can make money twice as fast but also lose capital quickly. Let us look at the ether performance this year: Data by YCharts Until the beginning of July 2025, there was a significant disconnect in the market between the price of bitcoin and the price of ether. While bitcoin was up over +15% for the year, ether was down -20%. That gap has now narrowed, with a massive rally in the past month, which saw ETHA gain +55%, while ETHT is up +127%: Data by YCharts Investors who get greedy need to remember, however, that the flip side of the coin also applies – ETHT was down an astounding -80% in May 2025 for the year. ETHT, in our view, is a very short-term momentum trading tool where investors bullish on ether can obtain a higher than normal return via this 2x fund. ETHT comes in handy because options on the unleveraged ETHA fund have a very high implied volatility, which makes buying options on ETHA very expensive. We view ETHT as a useful tool to have when one has a very distinct view on the underlying asset class. The best way to trade this is with clear-cut entry and exit points, and never fall in the mirage of a continuous doubling of capital for this name. What goes up fast also can come crashing down swiftly. Suffice to see the -80% drawdown for ETHT in 2025. Composition and fees As mentioned before in the article, the ETF obtains its returns via a mix of swaps and futures positions: Holdings (Fund Website) We can see the names containing July 2025 and August 2025 futures in the above chart. The name also has two swaps in place with Nomura and Goldman. The ETF comes with a net expense ratio of 0.94%. Conclusion ETHT is an exchange-traded fund from ProShares. The name provides for the 2x daily return of ether via a portfolio that includes ether futures and swaps. The fund is a highly speculative instrument and should only be used by investors who are very familiar with this crypto-currency and aim to boost returns via this leveraged fund. The name is not a buy and hold, and although up +127% in the past month, had a -80% drawdown earlier in the year.

Source: Seeking Alpha