Three Defiance 2x ETFs stop trading on Nov. 23

Three Defiance exchange-traded funds that seek twice a single day's percentage move will stop trading on Monday, Nov. 23. After that session they will not take purchase orders.

One supplement, filed Friday with the U.S. Securities and Exchange Commission, covers the Defiance Daily Target 2X Long Copper Miners ETF COPZ, listed on NYSE Arca, and the Defiance Daily Target 2X Long KEEL ETF KEEX, listed on Cboe BZX. A second covers the Defiance Daily Target 2X Long RCAT ETF RCAX, listed on Nasdaq. Both are dated Nov. 13.

Tidal Investments LLC, the adviser, told the funds' board that closing each fund would be in the best interests of the fund and its shareholders. The board determined that it was.

Each fund seeks twice the daily percentage change in one share price, and only for a single day.

COPZ seeks that result in the copper-miners fund, not in the price of copper. KEEX seeks it in Keel Infrastructure Corp., which until April 1 was Bitfarms Ltd. RCAX seeks it in Red Cat Holdings.

What holders can do

Holders can sell on the exchange before the end of the regular session on Nov. 23. The supplements say customary brokerage charges may apply.

After that session the funds will not accept purchase orders. From Nov. 23 through Nov. 30, a holder who still wants to sell may be able to do so only with certain broker-dealers, and the supplements say there is no assurance of a market. They define that span as the liquidation date.

On or about that date, holders who have not sold are to receive cash, pro rata, subject to any required withholding, and the funds then terminate. The supplements say the net asset value used for the cash will reflect all transactional costs of the liquidation. The costs come out in that calculation.

The supplements say the cash generally should be treated as received in exchange for the shares, a taxable event, and that the payment may include accrued capital gains and dividends. They tell holders to contact a tax adviser.

Between the end of trading and the liquidation, each fund will be closing down its portfolio. The supplements say that will increase its cash, and that it will stop seeking its investment objective.

A release from Defiance and Tidal Financial Group on Friday named a single liquidation date, Monday, Nov. 30, and said shares still held that day will be redeemed automatically at net asset value. The supplements' window runs through that Monday. The release also said the board and Defiance approved the closures as part of a review of the product lineup.

COPZ seeks that result in the copper-miners fund, not in the price of copper. KEEX seeks it in Keel Infrastructure Corp., which until April 1 was Bitfarms Ltd. RCAX seeks it in Red Cat Holdings.

Funds that became effective

Other amendments filed Thursday and Friday put new funds on the registration record. The prospectuses say those funds have not started.

The Volatility Shares Trust prospectus says ATHX seeks twice the daily performance of Anthropic's shares, before fees and expenses, and has not commenced operations. It intends to list on Cboe BZX. The T-REX fund is filed as a daily 2x long fund on the same company, also for Cboe BZX, and its prospectus says it has not commenced operations.

Nasdaq said on Nov. 11 that Anthropic will begin publicly trading on Nov. 19, under the ticker ANT.

NANL is in Tidal Trust V, not the trust closing the three funds. It seeks twice the daily move in the share price of Forge Nano Holdings, Inc. Tidal Investments LLC is the adviser. The Nov. 12 statement of additional information says no shares were outstanding.

XPU seeks the total return of the Akros CPU Index, before fees and expenses. SDC's policy ties it to the Akros Space Data Center & Infrastructure Index. The State Street and American Beacon amendments are only proposed to become effective on Monday, Nov. 16.

Exchange Listed Funds Trust also filed a summary prospectus for the xETFs International Semiconductor Index ETF ISMH. Northern Lights Fund Trust filed one, dated Oct. 28, for the Winton Managed Futures Trend Fund. Neither announced a fee change or asked holders to act.