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Defiance ETFs filed applications for Bitcoin and Ethereum related market-neutral exchange-traded funds (ETFs) called NBIT and DETH that execute a hedge money arbitrage strategy.
Bloomberg elder ETF expert Eric Balchunas shared the filings connected Sept. 16, noting that the funds run a strategy of buying spot crypto assets portion shorting futures contracts to seizure premiums.
The funds volition acquisition spot Bitcoin and Ethereum ETFs similar BlackRock’s IBIT and ETHA, portion simultaneously shorting futures contracts to nett from terms differentials.
Bloomberg ETF expert James Seyffart documented Ethereum ground trades delivering gross annualized returns averaging astir 10% during unchangeable marketplace conditions.
At the aforesaid time, Bitcoin ground trades showed gross yields reaching 11% successful caller months, with periods touching treble digits during volatile periods.
The trade’s market-neutral operation generates returns careless of cryptocurrency terms absorption by exploiting inefficiencies betwixt spot and derivatives markets.
Performance information reveals market-neutral profits
Seyffart’s investigation shows Ethereum ground returns maintained yields astir 10% done overmuch of 2025, though they experienced single-digit and antagonistic show during marketplace accent from precocious December 2024 done mid-March 2025.
Bitcoin’s ground commercialized generated consistently debased single-digit returns done the archetypal 4th earlier climbing to levels adjacent 8% by precocious July.
The ground commercialized capitalizes connected premiums that cryptocurrency futures contracts typically bid implicit spot prices. Bitcoin futures premiums reached 17% annualized pursuing the November predetermination earlier moderating to existent levels.
Defiance has established itself done innovative crypto-adjacent products. The institution launched leveraged single-stock ETFs targeting Strategy and Riot Platforms, some Bitcoin proxy companies.
Defiance besides filed “BattleShares” ETFs that simultaneously clasp agelong and abbreviated positions crossed Bitcoin versus Ethereum and Bitcoin versus golden pairs.
The caller filings adhd to the heap of astir 100 crypto-related ETF filings awaiting a determination by the US Securities and Exchange Commission.
The company’s projected funds marque an organization strategy accessible to retail investors without the superior requirements and operational complexity needed to execute ground trades independently.
The station Defiance files for Bitcoin and Ethereum ETF to seizure hedge money arbitrage strategy appeared archetypal connected CryptoSlate.
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