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Volatility Shares 2x Ether ETF drops 23% in a day amid rising Treasury yields and SpaceX IPO competition

Market News
07 Jun 2026
24/7 Wall Street
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Bearish
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The Volatility Shares 2x Ether ETF (ETHU) fell about 23% on June 5, driven by a strong May jobs report that pushed 2-year Treasury yields to a 16-month high, increasing the opportunity cost for speculative assets like Ethereum. ETHU's structure, which delivers twice the daily return of ether through futures with daily rebalancing, amplified losses, resulting in a 78% drop year-to-date compared to ether's 46%. The upcoming SpaceX IPO, expected to raise around $75 billion with significant retail demand, may further divert speculative retail investment away from crypto products like ETHU. Key factors to watch include Treasury yields, retail flow post-IPO, and any Ethereum protocol updates, but current conditions suggest continued pressure on leveraged crypto ETFs.

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