Tidal Trust II Files for Leveraged XRP ETF as Regulatory Environment Improves

• Tidal Trust II filed for a leveraged XRP ETF that offers 150-200% exposure to daily price changes and uses income strategies.

• The SEC removed Ripple’s fundraising cap, and Chair Paul Atkins said very few tokens should be securities.

• Existing XRP products show strong demand, with Teucrium’s fund reaching over $400 million in assets by August.

Tidal Trust II has submitted a Form N-1A Post-Effective Amendment to the Securities and Exchange Commission for the Defiance Leveraged Long + Income XRP ETF. The filing represents another step toward expanding institutional crypto investment products beyond Bitcoin and Ethereum.

Source: SEC; Tidal Trust II XRP/SOL ETF Filing

The proposed ETF targets 150% to 200% leveraged exposure to XRP’s daily price movements. The fund incorporates an options-based income strategy to generate additional returns for investors. This structure eliminates the need for margin accounts while providing amplified exposure to the digital asset.

The investment product focuses primarily on long-term capital growth. Income generation is a secondary objective through credit call spreads that aim to reduce leverage-related risks. This approach could attract institutional investors, including pension funds, insurance companies, and retirement portfolios seeking XRP exposure.

Wall Street Expands Crypto ETF Offerings

The Tidal Trust filing includes a similar leveraged product for Solana, indicating broader institutional interest in alternative cryptocurrencies. This development follows NYSE Arca’s earlier approval of Teucrium’s 2x Long Daily XRP ETF for listing.

Teucrium’s existing XRP product has demonstrated strong market demand. The fund attracted over $284 million in assets within four months of launch. By August, assets under management exceeded $400 million, suggesting significant investor appetite for leveraged XRP exposure.

The success of existing products provides a foundation for additional XRP investment vehicles. Market liquidity and trading volumes may increase as more institutional-grade products enter the marketplace.

Regulatory Landscape Shows Favorable Trends

Ripple has experienced positive regulatory developments since concluding its legal dispute with the SEC. The company received approval to remove its five-year fundraising cap, allowing unlimited capital raises from accredited investors without SEC registration requirements.

SEC Chair Paul Atkins recently stated that “very few” digital tokens should be classified as securities. This represents a notable shift from the agency’s previous regulatory stance. Atkins also introduced Project Crypto, an initiative to update securities laws to accommodate blockchain-based financial markets.

The SEC has delayed final decisions on multiple spot XRP ETF proposals until October. ETF analyst Nate Geraci suggests approvals could arrive by the final deadline, given the improved regulatory climate.

These regulatory changes create a more favorable environment for XRP-based investment products. The combination of clearer guidelines and institutional demand positions the cryptocurrency for broader adoption within traditional financial markets.

The Tidal Trust II filing demonstrates the rapid evolution of digital asset investment options. As regulatory barriers diminish, more sophisticated crypto investment products will likely emerge, providing institutional investors diverse exposure strategies to digital currencies like XRP.