(ETQ) T-Rex 2X Inverse Ether - Overview

The T-Rex 2X Inverse Ether Daily Target ETF (BATS: ETQ) seeks to deliver 200 % inverse exposure to the daily price movement of Ether (ETH) by investing at least 80 % of its net assets-plus any borrowing-into financial instruments that move opposite to ETH’s price on a day-by-day basis. Because the exposure is reset each trading day, the ETF is classified as non-diversified and levered, meaning its performance can diverge sharply from a simple 2× inverse over longer periods.

As of the most recent filing (Q4 2025):
• Expense ratio ≈ 0.95 % (annualized).
• Assets under management (AUM) ≈ $32 million, with an average daily trading volume of about $4 million.
• ETH’s 30-day realized volatility sits near 65 %, and the DeFi sector’s total value locked (TVL) has risen 12 % YoY, indicating a high-volatility environment that amplifies both upside and downside for inverse products.
These metrics suggest that ETQ’s leverage will be most impactful when ETH’s price swings are large and sustained.

Key risks stem from the ETF’s daily reset and borrowing structure: compounding effects can cause performance drift in trending markets, and the fund’s non-diversified nature means a single adverse move in ETH can erode capital quickly. Investors should also monitor macro-level drivers such as U.S. monetary policy, regulatory developments around cryptocurrencies, and network upgrades (e.g., Ethereum’s upcoming Shanghai-type hard forks) that can materially shift ETH price dynamics.

For a deeper, data-driven assessment of how ETQ’s risk-adjusted returns compare to alternative crypto-inverse strategies, consider exploring the analytics on ValueRay.