Tidal Trust II Seeks Approval for XRP and Solana Leveraged ETFs
Tidal Trust II has officially submitted an application to the US Securities and Exchange Commission in a bid to launch two new exchange-traded funds (ETFs) that will provide leveraged long exposure to XRP and Solana.
The filing, disclosed on Aug. 19 through Form N-1A, outlines the intention to offer daily exposure to these digital assets with leverage levels ranging from 150% to 200%. The goal of these funds is to combine aggressive growth potential with strategies that are specifically designed to generate consistent income.
In order to enhance returns while also managing the risks associated with leveraged positions, the ETFs plan to employ options-based techniques such as credit call spreads. This approach will enable investors to benefit from amplified exposure to XRP and Solana without having to engage in margin trading.
Rather than directly holding XRP or SOL, the ETFs will primarily invest in derivatives including swap agreements and options that are linked to US-listed XRP and SOL ETFs. Additionally, the funds may allocate capital to cash-settled futures and other exchange-traded products that track the price movements of these digital assets. This structure aims to provide both long-term capital appreciation and current income, making it attractive to a wide range of traditional investors.
The timing of this application coincides with the increasing optimism surrounding regulatory approval for crypto ETFs beyond just Bitcoin and Ethereum. Analysts, including Bloomberg’s James Seyffart, are predicting that the SEC may approve some altcoin ETF applications as early as October. This regulatory clarity has led to a surge in market interest for products linked to these altcoins.
Investor appetite for these products is already evident in the market. The Teucrium 2x Long Daily XRP ETF (XXRP) recently surpassed $400 million in net assets, becoming the first US-traded XRP ETF to achieve this milestone. Additionally, the REX Shares Solana Staking ETF (SSK) has attracted over $160 million in net inflows since its launch less than two months ago.
These achievements highlight the fact that investors are increasingly seeking structured exposure to XRP and Solana. As the interest in these digital assets continues to grow, the introduction of leveraged ETFs by Tidal Trust II could play a significant role in meeting the demands of investors looking to capitalize on the potential growth of XRP and Solana.