Defiance rolled out its first product with the launch of Ethi, a leveraged Ethereum exchange trading fund that blends amplified exposure and options-driven revenue streams.
summary
- Defiance launched Ethi on September 18th. This is the first Ethereum ETF to combine leveraged ETH exposure with optional revenue strategies.
- Ethi wants performance between 150% and 200% of ETH-related ETPs, while generating weekly distributions via credit call spreads.
- Although the ETF does not directly retain ETH, it provides a regulated exposure to Ethereum growth and volatility.
Defiance has announced Defiance leveraged Leveraged Long + Intereum Ethereum Etf (ETHI), the first exchange-traded fund designed to combine leveraged exposure to leveraged etherlink products with an revenue-generating option strategy.
According to a company press release, the product began trading on Nasdaq on September 18th.
Hybrid Ethereum ETF
Ethi seeks to provide 150% to 200% of the daily performance of its US-listed Ethereum (ETH) Exchange-Traded products, while simultaneously employing a credit call spread strategy to generate weekly revenue distributions. Retail investors who want to take advantage of Ethereum’s growth potential while maintaining consistent cash flow are the target audience for this dual strategy.
Ethereum, the second largest cryptocurrency by market capitalization, expands its application scope and is a leader in decentralized finance. By combining leveraged exposure with option overlays, Defiance returns Ethi as a way to benefit from Ethereum volatility, with revenue payments.
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It is not a direct ETH exposure
Despite its focus on cryptocurrency, Ethi does not directly hold or invest in derivatives linked to Ethereum’s spot prices. Eslinked ETPs are instead tracked by the fund and provide regulated exposure within the ETF structure.
Defiance points out that the call spread strategy could rise at strong gatherings, and that leverage could increase profits and losses. The main objective of ETFs is long-term capital rise and income generation is a secondary goal. Companies guarantee at least monthly payments, but distribution is intended weekly.
The launch has garnered investors’ interest in ETH-based ETFs following US approvals for Spot and Futures-related products earlier this year. Since its founding in 2018, Defiance has established a solid reputation by creating innovative leveraged and theme ETFs, including single shares and crypto-related funds.
Ethi appeals to investors looking for a structured way to expand its strategy by combining leveraged exposures with systematic revenues and join Ethereum’s market cycle without a margin account.
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