Defiance, GraniteShares Boost Leveraged ETF Offerings

Defiance ETFs is looking to increase the leverage on its MicroStrategy-tracking ETF, while GraniteShares is expanding its ETF lineup with new offerings, according to recent filings and announcements.

Defiance has filed to update its Defiance Daily Target 1.75X Long MSTR ETF (MSTX) to a 2X leverage, aligning it with other products in its lineup. The move comes as the firm expands its suite of leveraged ETFs tracking technology companies.

“It's already [the] most volatile in [the] US so this would push [the] volatility barrier further,” Eric Balchunas, senior ETF analyst, said in a Tuesday X post.

According to an Aug. 30 Securities and Exchange Commission filing, Defiance is seeking to modify MSTX to provide daily leveraged investment results of two times, or 200%, the daily percentage change in MicroStrategy’s share price. The fund currently offers 1.75X leverage.

Defiance currently offers nine ETFs with $1.3 billion in assets under management, according to etf.com data. Its largest fund is the Defiance Connective Technologies ETF (SIXG), with $557.8 million in assets and is up 18.9% year-to-date.

GraniteShares Adds to Single-Stock Leveraged ETF Suite

GraniteShares has introduced three new single-stock ETFs, expanding its product lineup in the tech sector. The new funds are the GraniteShares 2x Long PLTR Daily ETF (PTIR), the GraniteShares 2x Long UBER Daily ETF (UBRL), and the GraniteShares 1X Short COIN Daily ETF (CONI).

These funds provide leveraged exposure to Palantir Technologies, Uber Technologies, and inverse exposure to Coinbase Global.

These new funds join GraniteShares’ existing suite of leveraged and inverse ETFs tracking major tech companies, including Nvidia, Microsoft and Apple. With these additions, GraniteShares now offers 16 leveraged ETFs out of its total 18 ETFs. The funds manage over $8 billion in assets, according to a company press release.

The firm’s largest fund is the GraniteShares 2x Long NVDA Daily ETF (NVDL), which has amassed $4.9 billion in assets, highlighting the growing investor interest in leveraged exposure to high-profile tech stocks.

RoundHill Debuts Ether Covered Call ETF

In a separate release, Roundhill Investments announced the debut of the Roundhill Ether Covered Call Strategy ETF (YETH). The fund, which began trading on Cboe BZX, aims to offer investors exposure to ether while generating monthly income through a covered call strategy. Ether is the native token of the Ethereum smart contracts blockchain network and the second largest crypto by market capitalization behind bitcoin. 

"YETH offers investors an attractive blend of high income potential and exposure to ether," Dave Mazza, chief strategy officer at Roundhill Investments, said in the release.

The launch of YETH follows Roundhill’s introduction of the Roundhill Bitcoin Covered Call Strategy ETF (YBTC) in January, which has attracted $43.2 million in assets, and is the firm's bitcoin version of the covered call strategy. 

In late Wednesday trading, bitcoin was at about $58,000, roughly flat over the previous 24 hours, while ether was changing hands near $2,400, also about the same as the previous day same time. Both cryptos have seesawed in recent weeks.