Defiance ETFs confirmed on January 17th that it will liquidate its Ethereum ETF, trading under ETHI, along with seven other leveraged ETFs. The closure of these funds will be effective on January 30, 2026.
This decision reflects Defiance's adaptive strategies amid fluctuating market trends. The closure follows a period of just four months since the fund's existence, indicating swift strategic shifts in financial products.
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 occurring post-market close. Cash redemption at net asset value is scheduled for January 30, affecting investors' portfolios by reducing the selection in Ethereum market products.
Market reactions have been subdued, with no major public comments from industry leaders or regulatory bodies. Ethereum's price stability remains unaffected despite this strategic adjustment in ETF offerings, indicating investor resilience or prior anticipation.
ETHI Closure: Unusual Timing and Market Influence
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%. The 24-hour trading volume decreased by 19.16% to $18.82 billion.
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.