In a move that signals Wall Street’s growing appetite for altcoins, Tidal Trust II has filed with the U.S. Securities and Exchange Commission (SEC) to launch the Defiance Leveraged Long + Income XRP ETF. The filing, submitted as a Form N-1A Post-Effective Amendment, also included a leveraged Solana (SOL) product, showing an expansion beyond Bitcoin and Ethereum into other major digital assets.
The proposed fund aims to provide 150%–200% leveraged exposure to XRP’s daily price movements. It combines that leverage with an options-based income strategy, designed to generate additional returns while moderating risk. The primary objective is long-term capital appreciation, with income generation as a secondary goal.
By offering amplified exposure without requiring margin accounts, the ETF could appeal to a wider pool of institutional investors such as pension funds, insurers, and retirement portfolios. If approved, it could also enhance XRP’s trading volumes and liquidity, building on NYSE Arca’s earlier approval of Teucrium’s 2x Long Daily XRP ETF.
Regulatory Tailwinds Strengthen Case
The filing comes at a time of shifting U.S. regulatory sentiment. Ripple has benefited from increased clarity following the conclusion of its legal battle with the SEC. Recently, the agency lifted Ripple’s five-year fundraising cap, allowing it to raise unlimited funds from accredited investors without registering each round.
Other supportive signals include:
- SEC Chair Paul Atkins stating that “very few” tokens should be treated as securities.
- Launch of Project Crypto, aimed at modernizing securities laws for blockchain-driven markets.
- ETF analyst Nate Geraci noting that October could mark the final round of approvals for several pending spot XRP ETF applications.
Together, these shifts suggest the regulatory environment is moving toward more consistent support for digital asset products.
Growing Investor Appetite for XRP
Investor demand for XRP-related financial products has been growing rapidly. Teucrium’s leveraged XRP ETF, introduced earlier this year, has already attracted more than $400 million in assets by August, just four months after launch.
The new Tidal Trust filing underscores the pace of this trend, as institutional-grade products offer investors a structured way to gain exposure without navigating complex crypto exchanges. With global trading desks watching closely, XRP could see both higher liquidity and increased market depth if the product gains SEC approval.