Tidal Trust II has filed an application with the US Securities and Exchange Commission to introduce two new exchange-traded funds (ETFs) that offer leveraged long exposure to XRP and Solana.

The filing, made public on Aug. 19 via Form N-1A, outlines plans to offer daily exposure to the digital assets with leverage between 150% and 200%.

The funds aim to combine aggressive growth potential with strategies designed to generate consistent income.

It plans to employ options-based techniques, such as credit call spreads, to enhance returns while mitigating some of the risks associated with leveraged positions. Investors would benefit from amplified exposure to XRP and Solana without needing to engage in margin trading.

Rather than directly holding XRP or SOL, the ETFs would primarily invest in derivatives, including swap agreements and options linked to US-listed XRP and SOL ETFs.

The funds may also allocate capital to cash-settled futures and other exchange-traded products that track the price movements of these digital assets. The structure is intended to provide both long-term capital appreciation and current income, appealing to a broad spectrum of traditional investors.

Solana and XRP ETFs draw interest

The timing of the application aligns with increasing optimism around regulatory approval for crypto ETFs beyond Bitcoin and Ethereum.

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Author: Oluwapelumi Adejumo