The cryptocurrency market continues to attract traditional finance players, and the latest development puts XRP in the spotlight once again. In a major step forward, Tidal Trust II has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch a leveraged long XRP ETF. This move signals the growing acceptance of altcoin-based financial products in regulated markets and reflects the shifting regulatory climate in the United States.
Tidal Trust Expands Into XRP and Solana ETFs
Tidal Trust II has filed a Form N-1A Post-Effective Amendment with the SEC to register the Defiance Leveraged Long + Income XRP ETF. Alongside the XRP product, a similar leveraged ETF tied to Solana (SOL) has also been proposed. This demonstrates a clear evolution in crypto ETF offerings, which have traditionally been dominated by Bitcoin and Ethereum, as Wall Street-backed products are now broadening into popular altcoins.
The proposed XRP ETF is designed to provide 150%–200% leveraged exposure to XRP’s daily price movements, giving investors amplified gains compared to spot trading. At the same time, the fund employs an options-based income strategy that focuses on generating consistent cash flow while managing risk. The structure combines leverage with credit call spreads, allowing for the possibility of enhanced returns while reducing downside volatility.
For investors, this could mean an opportunity to gain long-term capital growth and recurring income without directly managing margin accounts. Institutional players such as pension funds, insurance companies, and retirement portfolios could also benefit from exposure to XRP in a more structured and regulated format.
This filing comes shortly after NYSE Arca approved Teucrium’s 2x Long Daily XRP ETF, a product that has already captured significant market interest. With demand for leveraged XRP products growing, Tidal Trust’s move underscores the rising institutional appetite for digital asset investment vehicles.
Shifting Regulations Boosting XRP’s Momentum
The filing also coincides with notable regulatory shifts in the United States. Ripple has been gaining momentum since the conclusion of its high-profile lawsuit with the SEC. One of the most significant changes was the regulator’s decision to remove Ripple’s five-year fundraising cap, allowing the company to raise unlimited capital from accredited investors without additional SEC registration. This policy adjustment provides Ripple with expanded flexibility in securing funding for growth and development.
Although decisions on several spot XRP ETF applications have been postponed until October, industry analysts remain optimistic. ETF expert Nate Geraci has indicated that final approvals are likely by the deadline, considering the growing momentum and regulatory pressure for clarity.
Adding to the optimism, SEC Chair Paul Atkins recently stated that “very few” cryptocurrencies should be treated as securities. This represents a major departure from the SEC’s traditionally strict stance on crypto assets. He also introduced Project Crypto, an initiative aimed at modernizing securities laws to better accommodate blockchain-based financial markets.
Investor Interest in Leveraged XRP Products
The success of similar crypto investment vehicles highlights the strong demand for diversified exposure to digital assets. For instance, Teucrium’s leveraged XRP ETF attracted over $284 million in assets within four months, surpassing $400 million by August. This rapid growth reflects investor enthusiasm for structured crypto products that offer higher yield potential alongside controlled risk.
Tidal Trust’s leveraged XRP ETF could play a pivotal role in expanding institutional participation and deepening liquidity in the XRP market. By providing regulated access to leveraged exposure, these products may also contribute to stabilizing market volumes and attracting a broader class of long-term investors.
Final Thoughts
The Tidal Trust II leveraged XRP ETF filing is another milestone in the ongoing integration of cryptocurrencies into mainstream finance. With regulatory frameworks gradually softening and institutional appetite rising, XRP is emerging as one of the top altcoins gaining Wall Street’s attention. If approved, this ETF could further strengthen XRP’s position in the global market, opening new opportunities for investors who want exposure to the digital asset in a regulated and scalable way.
