Ethereum ETF with leverage and options income approach initiated by Defiance
New Ethereum Leveraged ETF Launched by Defiance
In a significant move for the cryptocurrency market, Defiance, a renowned issuer of innovative ETFs, has launched the Defiance Leveraged Long + Income Ethereum ETF (ETHI). This new ETF, unveiled on September 18, 2025, marks the first leveraged Ethereum ETF in the market.
Defiance has built a reputation for creating unique ETFs, including single-stock and crypto-linked funds. The launch of ETHI follows the U.S. approval of spot and futures-linked ETH products earlier this year, which has sparked increased interest in ETH-based ETFs among investors.
Unlike traditional ETFs, ETHI does not directly hold Ethereum or invest in derivatives linked to its spot price. Instead, its primary objective is long-term capital appreciation, with income generation serving as a secondary goal. The ETF extends Defiance's strategy by combining leveraged exposure with a systematic income strategy, appealing to investors seeking structured ways to participate in Ethereum's market cycles without the need for margin accounts.
The call spread strategy in ETHI may cap upside in strong rallies, and leverage can amplify both gains and losses. To mitigate this, Defiance emphasises that the ETF is tracked by ETH-linked ETPs, providing regulated exposure within the ETF structure.
Distributions from ETHI are intended to be weekly, though the firm guarantees at least monthly payouts. This income strategy sets ETHI apart from other leveraged ETFs in the market.
It's worth noting that the U.S. Securities and Exchange Commission (SEC) has yet to make a decision on Ethereum ETF staking for other applicants, including BlackRock. This delay in decision-making may impact the trajectory of the Ethereum ETF market in the coming months.
As the cryptocurrency market continues to evolve, the launch of ETHI represents a significant step forward for investors seeking innovative ways to participate in the Ethereum market. With its unique combination of leveraged exposure and income generation, ETHI offers a compelling option for those looking to capitalise on Ethereum's long-term potential.
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