Defiance Seeks Approval for Bitcoin and Ethereum ETF Targeting Arbitrage Strategy

According to its latest SEC filing, Defiance aims to launch two ETFs that use basis trading to exploit price gaps between spot and futures markets for Bitcoin and Ethereum.

BTC
ETH

Summary

Defiance has submitted a filing with the U.S. Securities and Exchange Commission seeking approval for two ETFs designed around basis trading strategies tied to Bitcoin and Ethereum. The funds are intended to profit from discrepancies between spot and futures prices while reducing exposure to significant price swings. If approved, these ETFs would provide institutional and retail investors with a structured arbitrage-focused vehicle for crypto markets.

Terms & Concepts
  • ETF: An exchange-traded fund that holds assets like stocks or commodities and trades on an exchange, providing investors exposure without direct ownership.
  • Basis Trading: A strategy that profits from the price difference between a futures contract and the underlying asset, such as Bitcoin or Ethereum.