Tidal Trust II Seeks SEC Approval for XRP and Solana Leveraged ETFs
Tidal Trust II has submitted a request to the US Securities and Exchange Commission (SEC) for the introduction of two new exchange-traded funds (ETFs) that 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 the digital assets with leverage ranging from 150% to 200%. These funds aim to combine aggressive growth potential with strategies focused on generating consistent income.
To enhance returns and manage risks associated with leveraged positions, the ETFs plan to utilize options-based techniques like credit call spreads. Investors will have the opportunity to gain amplified exposure to XRP and Solana without the need for margin trading.
Instead of directly holding XRP or SOL, the ETFs will primarily invest in derivatives such as swap agreements and options linked to US-listed XRP and SOL ETFs. Additionally, the funds may allocate capital to cash-settled futures and other exchange-traded products tracking the price movements of these digital assets. This structure is designed to offer both long-term capital appreciation and current income, appealing to a wide range of traditional investors.
Interest in Solana and XRP ETFs is on the rise, with growing optimism around regulatory approval for crypto ETFs beyond Bitcoin and Ethereum. Analysts like Bloomberg’s James Seyffart anticipate that the SEC could greenlight some altcoin ETF applications by October.
This regulatory clarity has sparked increased market interest in products tied to these altcoins. Notably, investor demand for these products is already evident, with the Teucrium 2x Long Daily XRP ETF (XXRP) surpassing $400 million in net assets, a first for a US-traded XRP ETF. Similarly, the REX Shares Solana Staking ETF (SSK) has garnered over $160 million in net inflows since its launch less than two months ago.
These milestones underscore the growing investor appetite for structured exposure to digital assets like XRP and Solana.
