XRP Leveraged ETF? Wall Street Expands the Game with Tidal Trust II

The regulatory landscape in the United States is shifting – and with it, Wall Street’s approach to cryptocurrencies. The latest evidence comes from Tidal Trust II, which has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a long XRP exchange-traded fund (ETF) with leverage.

Wall Street Looks Beyond Bitcoin and Ethereum According to an amendment to Form N-1A, Tidal Trust intends to introduce the Defiance Leveraged Long + Income XRP ETF, offering investors 150–200% exposure to XRP’s daily price movements. The fund also incorporates an options-based income strategy, designed to enhance returns while helping mitigate the inherent risks of leveraged trading. Interestingly, the filing also includes a similar leveraged product for Solana (SOL). This underscores the trend of Wall Street-backed crypto investment products expanding beyond Bitcoin and Ethereum into the realm of altcoins.

Why It Matters for Investors The new ETF could make XRP more accessible to a broader range of institutions – from pension funds and insurance companies to asset managers. Such exposure has the potential to boost market liquidity and deepen trading volumes. This comes on the heels of the success of the Teucrium 2x Long Daily XRP ETF, which received NYSE Arca approval earlier this year and quickly attracted over $400 million in assets within a few months.

A Positive Regulatory Tailwind for XRP Since settling its long-running lawsuit with the SEC, Ripple has been riding a bullish wave. A recent regulatory adjustment – the removal of the five-year fundraising limit – now allows Ripple to raise unlimited capital from accredited investors without registering with the SEC. This significantly expands its financing capabilities. Adding to the momentum, SEC Chairman Paul Atkins recently stated that “very few” tokens should be classified as securities – a notable departure from the regulator’s traditionally strict stance. Atkins also unveiled Project Crypto, an initiative to modernize securities laws in a way that better reflects blockchain-based financial markets.

What Comes Next? While the SEC has postponed decisions on several spot XRP ETF applications until October, analysts – including ETF expert Nate Geraci – suggest that a final approval could arrive by then. The Tidal Trust II filing highlights how rapidly the digital asset investment landscape is evolving. If approved, this new ETF could open the door for massive institutional adoption of XRP, making it one of the most influential altcoin products on the market.

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