Defiance Files For a 2X Leveraged Ethereum Futures ETF (ETHL)

• James Seyffart has spotted a newly filed Ethereum ETF.
• Defiance filed for a 2x leveraged MicroStrategy ETF.
• Seyffart thinks the earliest Defiance’s newly filed ETF can trade is late June.

James Seyffart, an ETF Research Analyst at Bloomberg Intelligence, has spotted a newly filed Ethereum ETF. In a recent post on X, Seyffart noted that Defiance, a company that recently filed for a 2x leveraged MicroStrategy ETF, has filed for a 2x leveraged Ethereum ETF. According to Seyffart, the ETF will potentially trade under the ticker ETHL.

A screenshot shared by Seyffart showed Defiance made the filing on Monday, April 8, 2024. An excerpt from the filing read:

“The information herein is not complete and may be changed. We may not sell these securities until the registration statement filed with the U.S. Securities and Exchange Commission (SEC) is effective.”

Defiance filed that it seeks daily inverse investment results of -2 times (-200%) the daily percentage change of the common stock of MicroStrategy incorporated as part of its investment objectives. It also noted that its instrument is riskier than alternatives that do not use a short strategy. 

Furthermore, Defiance highlighted that the return for investors that invest for periods longer or shorter than a trading day should not be expected to be -200% of the performance of the Underlying Stock for the period. 

The subject of Ethereum ETFs came to the front burner after the SEC approved several Bitcoin ETFs last January. Although unfolding events have revealed inconsistencies between the Bitcoin ETF approval process and Ethereum’s, many users believe the latter could still be realized. 

Meanwhile, delays by the SEC have led many users to doubt the possibility of achieving Ethereum ETF approvals by the commission’s deadline of May 23.  According to Seyffart, the earliest Defiance’s leveraged Ethereum futures ETF could begin trading is around late June.