Investment firm Tidal Trust II has taken a significant step into the cryptocurrency space by filing for the launch of the first leveraged XRP ETF, offering investors enhanced profit opportunities.
Tidal Trust II's ETF Filing
Tidal Trust II has filed Form N-1A with the U.S. Securities and Exchange Commission (SEC) to launch the Defiance Leveraged XRP ETF. The fund aims to deliver daily returns of 150-200% of Ripple's price performance before fees and expenses.
Fund's Innovative Strategy
The fund employs a combination of strategies to achieve enhanced income, including the use of swaps, options, and futures on Ripple. These instruments will help track the token's price movements, while also employing credit call spreads to mitigate risks and generate premium income.
Future of SEC Approval
Form N-1A serves as a registration document for open-end mutual funds and ETFs, providing investors with key information about the fund's goals, risks, and expenses. Once submitted, the SEC reviews the filing for regulatory compliance. If approved, it will become the first leveraged XRP ETF in the U.S. However, previous delays by the SEC in approving various ETFs raise uncertainty about Tidal Trust's filing decision.
The launch of a leveraged XRP ETF could signify a major event in the cryptocurrency market, providing investors with new opportunities. However, the approval question remains open due to past delays in decision-making by the SEC.
