MIAMI, Sept. 18, 2025 (GLOBE NEWSWIRE) -- September 18, 2025 Defiance ETFs has launched the Defiance Leveraged Long + Income Ethereum ETF (ETHI), an innovative exchange-traded fund (ETF) that combines leveraged exposure to ether-linked exchange-traded products (ETPs) with an options-driven income strategy. This ETF is designed to offer retail investors both amplified growth potential and consistent cash flow through a credit call spread strategy.
What Makes $ETHI Stand Out?
- Leveraged Exposure: $ETHI seeks to deliver approximately 150% to 200% of the daily performance of U.S.-listed ETPs tied to ether, capitalizing on ETH’s volatility and growth potential.
- Weekly Income Generation: * By utilizing a credit call spread strategy, the ETF seeks to generate weekly income, providing regular cash flow and a potential buffer against declines.
- Ethereum Growth: Ethereum is the world’s second-largest digital asset and the foundation for decentralized finance (DeFi), smart contracts, and a wide array of blockchain-based applications. With its active developer ecosystem, ongoing network upgrades, and broad industry adoption, Ethereum is positioned to remain a driving force in digital asset innovation. $ETHI offers investors a regulated ETF structure to capture Ethereum-linked growth while also receiving weekly income distributions.
Investment Objective
The Defiance Leveraged Long + Income Ethereum ETF (the “Fund”) seeks long-term capital appreciation, with a secondary objective to seek current income. The Income Generation Strategy complements the Leveraged Strategy by utilizing credit call spreads to seek to generate premium income and manage risk associated with the Fund’s leveraged exposure.
Why Ethereum?
Ethereum is the world’s second-largest digital asset and the foundation for smart contracts, decentralized finance (DeFi), and blockchain-based innovation. With an active developer community and continued network upgrades, Ethereum remains a key driver of crypto adoption worldwide. $ETHI offers investors a way to access Ethereum-linked growth in a regulated ETF structure, while also receiving weekly distributions.
The Fund does not invest directly in ether or any other digital assets. The Fund does not invest directly in derivatives that track the performance of ether or any other digital assets. The Fund does not invest in or seek direct exposure to the current “spot” or cash price of ether. Investors seeking direct exposure to the price of ether should consider an investment other than the Fund.
The Fund may not achieve daily investment results, before fees and expenses, that correspond to 150% to 200% of the performance of its underlying ETPs, and may return substantially less during such periods. During such times, the Fund’s actual leverage levels may differ significantly from its intended target range, both intraday and at the close, potentially resulting in lower returns. While the Fund’s strategies are designed to enhance potential returns, the credit call spread strategy may limit upside performance on the portion of exposure covered. While the Fund strategies are designed to enhance potential returns, the strategy to generate income may limit the upside performance of the leveraged strategy on the portion of exposure covered by the credit call spreads
* The fund intends to make distributions, if any, as a regular course on a weekly basis, but at a minimum monthly.
About Defiance
Founded in 2018, Defiance is at the forefront of ETF innovation. Defiance is a leading ETF issuer specializing in thematic, income, and leveraged ETFs. Its first-mover leveraged single-stock and crypto-linked ETFs empower investors to take amplified positions in high-growth themes, providing precise leverage exposure without the need for a margin account.
Important Disclosures
The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
Investing involves risk. Principal loss is possible. An investment in the Fund is not a direct investment in Ethereum or any other digital asset.
ETHI Risks.
The Fund invests in swap contracts and options that are based on the value of ether-linked exchange-traded products (“ETPs”). This subjects the Fund to the risk that the value of ether, or the performance of the ether-linked ETPs, decreases. If the price of ether or ether-linked ETPs decreases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. Therefore, as a result of the Fund’s exposure to the value of ether through these ETPs, the Fund may also be subject to additional risks such as:
Indirect Investment in Ether Risk. Ether (ETH) is a decentralized digital asset and is not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates, and is not involved with this offering in any way. Investors in the Fund will not have any rights to or ownership of Ether, and will not receive any digital assets or participate in the Ethereum network. Investors will be exposed solely to the price performance of Ether (through the Fund’s underlying investments).
Ether Trading Risk. The price of Ether, and of Ether-linked exchange-traded products (“ETPs”) or derivatives, may be highly volatile and subject to rapid and wide fluctuations due to factors such as market conditions, speculative activity, public perception, technological events, or regulatory actions. A disruption or trading halt in Ether, Ether futures, or an Ether ETP could temporarily or indefinitely impede the trading of the Fund’s shares and negatively impact the Fund’s value.
Ether Performance Risk. Ether’s value is largely speculative and depends on the continued development and acceptance of the Ethereum network. If the Ethereum network’s growth, usage, or technological advancements fail to meet expectations – or if unforeseen issues such as network attacks, competition from alternative platforms, or technical failures arise – the price of Ether may decline significantly, adversely affecting the Fund’s performance.
Cryptocurrency Industry Risk. Ether exists within a nascent and rapidly evolving digital asset industry. This sector faces aggressive competition from alternative blockchain projects, potential technological obsolescence, regulatory uncertainty, market fragmentation, and cybersecurity threats. These factors can materially impact the value of digital assets like Ether and lead to increased volatility in the Fund’s portfolio.
Ethereum Network Risk. The Ethereum blockchain relies on decentralized participants and open-source technology, which subjects it to unique operational and security vulnerabilities. Events such as network attacks, software bugs, “forks” (divisions of the blockchain), or significant changes in validator participation can disrupt the Ethereum network. Any major failure or compromise of Ethereum’s protocol or security could significantly reduce the value of Ether and, in turn, negatively affect the Fund.
Income Generation Strategy Risk. The Fund’s use of a credit call spread strategy to generate weekly income will limit its participation in upward movements of the underlying Ether ETPs beyond certain levels. While this options strategy is intended to provide income and mitigate some risk, it also caps a portion of the Fund’s potential gains. As a result, the Fund may underperform in strongly rising markets for Ether, and the strategy does not eliminate the possibility of losses if Ether’s price moves adversely beyond the spread’s parameters.
Additional Risks
Derivatives Risks. The Fund’s derivative investments may not perfectly track the performance of the underlying asset, and principal loss may exceed the initial investment. Counterparty risk, illiquidity, and potential tax consequences further increase risk.
Leverage Risk. Investments in swaps and options create leverage, which magnifies both potential gains and losses.
Compounding and Market Volatility Risk. The Fund’s performance over periods longer than a single day may differ significantly from its stated target due to compounding and the effects of market volatility.
High Portfolio Turnover Risk. Frequent trading can increase transaction costs and reduce performance.
Non-Diversification Risk. As a non-diversified fund, ETHI may invest a greater percentage of assets in a single issuer, increasing volatility and exposure to issuer-specific risks.
New Fund Risk. ETHI has no operating history, offering limited basis for evaluating performance or management.
Brokerage Commissions may be charged on trades.
Distributed by Foreside Fund Services, LLC.
Contact information
David Hanono
info@defianceetfs.com
833.333.9383
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