Defiance to Liquidate Two Leveraged Inverse Single-Stock ETFs

Defiance plans to liquidate two leveraged inverse single-stock ETFs, the Defiance Daily Target 2X Short ASTS ETF (ASTN) and Defiance Daily Target 2X Short TSM ETF (STSM), following a recommendation from investment adviser Tidal Investments. According to a November 4, 2026, regulatory filing, both funds will cease trading on their respective exchanges on November 16, 2026, with liquidation scheduled for November 20, 2026. ASTN provides targeted inverse leveraged exposure to AST SpaceMobile, while STSM targets Taiwan Semiconductor Manufacturing Company. Shareholders can sell their holdings before the trading deadline, while remaining investors will receive cash distributions upon liquidation. The funds will progressively shift toward cash during the wind-down period, potentially limiting liquidity and deviating from their stated investment objectives.