All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Tidal Trust II has filed for a leveraged long XRP ETF with exposure to XRP price movements and use an options-based income strategy, including credit call spreads, to manage risk and generate yield.
- The proposed ETF targets institutional investors such as pension funds and insurers that cannot trade on margin, aiming for long-term capital growth while providing additional liquidity in the XRP market.
The Tidal Trust II submitted a new filing to the U.S. Securities and Exchange Commission (SEC) on August 20, seeking approval of a new exchange-traded fund (ETF) listing direct exposure to XRP. The filing, filed by means of a Form N-1A Post-Effective Amendment, proposes the Defiance Leveraged Long + Income XRP ETF.
A Look At Tidal Trust’s Leveraged XRP ETF
The proposed ETF will provide leveraged exposure of 150% to 200% in the daily change in the XRP price. In the filing, it mentions that the product will utilize an options-based income strategy in line with its leverage. Particularly, it will employ the use of credit call spreads as a part of its strategy to mitigate risks of having an increased exposure and positively derive some extra yield in the process.
According to Tidal Trust, the main investment purpose of the fund is long-term capital growth, and the current income is considered as a secondary goal. Assuming this is approved, the leveraged mechanism would allow XRP to enter the portfolios of the institutions that generally cannot trade on margin. These include the pension funds, insurers, and retirement accounts.
Moreover, analysts describe that these vehicles tend to provide more liquidity and trading in the market once capital flows have been attracted. This follows the listing of the NYSE Arca of the Teucrium 2x Long Daily XRP ETF that has already seen high participation levels amongst investors.
On the other hand, Ripple investors are eagerly awaiting the approval for spot XRP ETF, with some expectations for October approval, as mentioned in our previous story.
XRP Adoption Continues To Grow
The drive to XRP-related products is observed amidst the regulatory trends in Washington that are projected to be more soft on digital assets. Ripple was able to relieve the fundraising prohibition created in 2013 by the SEC after reaching a settlement with the regulator earlier this year.
At the same time, SEC Chair Paul Atkins has expressed the view that a modest number of cryptocurrencies are to be classified as securities. He also announced his plan to work on revising securities laws so that blockchain-based markets could be accommodated.
Following the success of spot Bitcoin ETF and spot Ether ETFs, demand for XRP ETF has been growing, especially after the SEC settlement last month. Ripple partner SBI Holdings is also planning for an XRP ETF, subject to regulatory approval, as reported by CNF.
Meanwhile, the strong early uptake in Teucrium leveraged XRP product highlights the potential of structured ETFs in energizing the intersection of the traditional and digital asset worlds. It has now exceeded $400 million in assets as of August 2025.
