Back

Defiance Launches ETHI, a Leveraged Ethereum ETF with Options Income Strategy

The Nasdaq-listed fund targets 150–200% daily performance of ETH-linked ETPs, combining leverage with weekly income distributions via a covered call spread.

ETH

Summary

Defiance has introduced the Defiance Leveraged Long + Income Ethereum ETF (ETHI), the first ETF to merge leveraged exposure to Ethereum-linked exchange-traded products with an income-generating options strategy. Trading on Nasdaq since Sept. 18, ETHI aims to deliver 150–200% of daily performance of U.S.-listed ETH ETPs while employing a credit call spread to generate weekly income payouts. The fund offers regulated Ethereum exposure without directly holding the cryptocurrency or spot price derivatives. It targets retail investors seeking both capital appreciation and consistent cash flow, while noting leverage can magnify gains and losses and the options strategy may cap upside.

Terms & Concepts
  • Leveraged ETF: An exchange-traded fund using financial derivatives and debt to amplify the returns of an underlying index or asset, potentially increasing both gains and losses.
  • Credit Call Spread: An options strategy involving the sale of one call option and purchase of another at a higher strike price, generating income but limiting potential upside.
  • ETH-linked ETP: An exchange-traded product that tracks the performance of Ethereum or related indices, allowing regulated market exposure without directly holding the asset.