Tidal Trust II Seeks SEC Approval for Leveraged XRP and Solana ETFs
Tidal Trust II has taken a bold step toward expanding institutional and retail access to altcoins by filing with the U.S. Securities and Exchange Commission (SEC) to start two new leveraged exchange-traded funds (ETFs). The funds, if approved, would track XRP and Solana (SOL), offering daily returns of 150% to 200% of their underlying assets.
According to the Form N-1A submission dated August 19, these ETFs are designed to give investors a way to capture amplified gains in XRP and Solana without having to use margin trading. The proposal reflects the growing appetite for structured crypto investment products, particularly among institutions that prefer the regulatory protection of ETFs over direct exposure to cryptocurrencies.
No Direct Crypto Holdings
Unlike traditional spot ETFs, the proposed leveraged funds will not hold XRP or Solana directly. Instead, they will rely on derivatives such as swaps, options, and futures tied to U.S.-listed XRP and Solana ETFs.
This approach has two purposes:
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It gives investors access to amplified returns in a regulated structure.
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It reduces custody risks that come with directly holding cryptocurrencies.
Tidal Trust explained that the ETFs would use options strategies, including credit call spreads, to generate income while offsetting some of the risks tied to leverage. By doing so, the funds aim to balance volatility with risk management, creating a product that appeals to both sophisticated traders and institutional allocators.
Investor Appetite Already Growing
The demand for structured XRP and Solana products is not theoretical—it’s already visible in the market.
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The Teucrium 2x Long Daily XRP ETF (XXRP) recently surpassed $400 million in net assets, making it the first U.S.-traded XRP product to reach that milestone.
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The REX Shares Solana Staking ETF (SSK), started less than two months ago, has already attracted $160 million in inflows, highlighting strong demand for Solana-linked investments.
These figures underline the appetite for regulated crypto products among U.S. investors, who remain cautious about directly buying and holding digital assets on exchanges that face both technical and regulatory risks.
Broader Implications for the Crypto ETF Market
Tidal Trust’s proposed ETFs represent more than just new trading products. They point to a broader trend of institutional capital flowing into altcoins beyond Bitcoin and Ethereum.
Until recently, most of the focus in the U.S. ETF market has been on Bitcoin spot ETFs and Ethereum futures ETFs. With leveraged XRP and Solana funds entering the conversation, the door is opening for a wider spectrum of crypto-linked investment vehicles, spanning stablecoin ETFs, staking-based products, and yield-generating instruments.
For investors, this means more opportunities to tailor exposure based on their risk tolerance and market outlook. For regulators, however, it raises new questions about how leverage and derivatives in crypto ETFs might amplify volatility in already fast-moving markets.
SEC’s Reluctance Still a Barrier
While the filing signals progress, approval is not guaranteed. The SEC has delayed rulings on at least nine crypto ETF applications in recent months, pushing all of them into an October decision cluster.
The regulator has consistently raised concerns over market manipulation, liquidity, and investor protection, especially with products offering leverage. Approving leveraged XRP and Solana ETFs would mark a significant shift in the SEC’s stance, but it could also trigger debates over whether retail investors should have access to such high-risk, amplified products.
Still, the continued stream of filings from issuers like Tidal Trust reflects confidence that regulators will eventually allow more diversity in the ETF space. Industry observers note that institutional pressure, growing market size, and global competition—with Europe and Asia already advancing crypto ETFs—may push the SEC toward approvals sooner than later.
Why XRP and Solana?
The choice of XRP and Solana for leveraged ETFs is strategic.
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XRP is one of the most widely used tokens for cross-border payments and has gained momentum following legal clarity from the U.S. courts regarding its classification. Despite price fluctuations, it remains one of the top 10 cryptocurrencies by market capitalization.
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Solana (SOL) has emerged as a high-performance blockchain capable of handling thousands of transactions per second, making it a strong competitor to Ethereum in areas such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
Both assets have large, active communities and strong trading volumes, making them suitable candidates for ETFs that require liquidity and institutional participation.
A Step Toward Mainstream Adoption
If approved, Tidal Trust’s leveraged ETFs would mark another milestone in bringing altcoins into the regulated investment mainstream. They would also expand the toolkit for traders and portfolio managers, allowing more sophisticated strategies without the need to engage directly with crypto exchanges.
Ultimately, the filing highlights how far the crypto ETF market has come since the days when only Bitcoin futures ETFs were available. With XRP and Solana now in the spotlight, the ETF landscape is expanding rapidly, signaling a future where regulated products mirror the diversity of the broader crypto market.
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