Defiance ETFs has announced the closure and liquidation of its Ethereum ETF (ETHI) along with eight other funds, with liquidation set for the end of January and delisted shares to stop trading a few days earlier.

The move highlights the intense competition and hurdles in the U.S. crypto ETF market, where inflows have been strong but many products struggle to build sustainable assets under management and profitability.

Since the SEC approved spot Ethereum ETFs in May 2024, the U.S. market has drawn major players and now holds more than $20 billion across spot ETH ETFs.

Smaller ETF issuers face high ongoing costs for compliance, custody, marketing, and administration, and need scale to stay viable, which contributes to closures when AUM doesn’t meet thresholds.

Defiance says the closure follows a strategic lineup review and a push to offer more tailored investment opportunities.

ETHI, launched by Defiance in September 2025, aimed to deliver 150%–200% of the daily performance of Ethereum-based assets and traded around $6.95 prior to delisting.

Industry context shows spot Bitcoin and Ethereum ETFs attracted about $50 billion in inflows in 2025, with crypto ETF assets under management totaling roughly $170 billion.

Investors will be able to redeem shares at net asset value on liquidation day after the fund stops accepting orders on January 26, 2026.