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This summary text is fully AI-generated and may therefore contain errors or be incomplete.
This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Defiance ETFs has submitted a proposal to the SEC for four new leveraged ETFs, including funds that take simultaneous long and short positions on Bitcoin and Ethereum. These actively managed funds aim to capitalize on relative price movements between the paired assets using derivatives rather than direct holdings.
- Funds use derivatives (futures, swaps, options) for synthetic exposure rather than holding actual Bitcoin, Ethereum or gold.
- Up to 25% of assets may be allocated to a Cayman Islands subsidiary for favorable US tax treatment under RIC rules.
- High portfolio turnover expected due to frequent rebalancing from market volatility and derivative expirations.
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