Defiance ETFs Files for Bitcoin and Ethereum Market-Neutral ETFs
- Defiance ETFs submitted applications for two market-neutral exchange-traded funds (ETFs) named NBIT and DETH on September 16.
- The funds aim to profit by buying spot Bitcoin and Ethereum while shorting futures contracts.
- Recent analysis indicated that Ethereum basis trades delivered gross annualized returns averaging around 10%, while Bitcoin basis trades reached yields of up to 11%.
- Bitcoin futures premiums peaked at an annualized rate of 17% following the November election, before stabilizing at lower levels.
- These new filings contribute to nearly 100 crypto-related ETF applications currently pending with the US Securities and Exchange Commission.
The proposed NBIT and DETH funds will offer retail investors access to sophisticated trading strategies typically reserved for institutional players, without the complexity of executing basis trades independently.
With Ethereum basis returns maintaining yields around ten percent through much of the year, these ETFs could provide a new avenue for investors seeking exposure to Bitcoin and Ethereum. (Source)
