Defiance to Liquidate Ethereum and Other Leveraged ETFs

2 mins mins

Key Points:

Defiance ETFs to liquidate Nasdaq-listed Ethereum and seven other leveraged ETFs.
Closure follows four months of the fund’s existence.
Defiance reviews its product lineup aligned with market conditions.

Defiance ETFs confirmed on January 17th it will liquidate its Ethereum ETF, trading under ETHI, along with seven other ETFs, concluding operations on January 30, 2026.

This decision reflects adaptive strategies amid fluctuating market trends, potentially affecting Ethereum’s financial landscape and investor positioning.

Immediate Implications for Investors in Ethereum ETFs

Defiance ETFs announced its decision to terminate and liquidate the Nasdaq-listed Ethereum exchange-traded fund (ETHI) alongside seven other leveraged ETFs. This action was approved by the Board of Trustees of Tidal Trust II, reflecting a strategic revisit of product lines.

Immediate implications include the end of ETHI’s trading life on January 26, 2026, with delisting post-market close. Cash redemption at net asset value is set for January 30, affecting investors’ portfolios with a reduced selection in Ethereum market products.

Market reactions are subdued with no major public comments from industry leaders or regulatory bodies. Ethereum’s price stability remains, despite this strategic adjustment in ETF offerings, indicating investor resilience or prior anticipation.

ETHI Closure: Unusual Timing and Market Influence

Did you know? The closure of ETHI is an uncommon move for ETFs to occur within a four-month period of listing, reflecting swift strategic shifts in financial products.

As of January 17, 2026, Ethereum (ETH) holds a price of $3,300.86. Its market cap stands at $398.40 billion, with a market dominance of 12.34%, and 24-hour trading volume decreased by 19.16% to $18.82 billion, according to CoinMarketCap.

ethereum-daily-chart-2501 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 14:08 UTC on January 17, 2026. *Source: CoinMarketCap*

According to Coincu’s research, the ETHI ETF’s closure signals potential discussions in financial markets regarding the viability and demand for highly specialized ETFs. Historical trends suggest that consumer realignment towards traditional securities might impact future ETF innovation.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.