The XRP market is heating up again as Wall Street makes a fresh move into altcoins. Tidal Trust II has officially filed with the US SEC to launch a leveraged long XRP ETF, opening the door for more institutional exposure beyond Bitcoin and Ethereum. This filing comes at a time when regulatory attitudes toward crypto are showing signs of softening, fueling fresh optimism for XRP’s future.
A Bold New XRP ETF Proposal
According to the filing, the new product is called the Defiance Leveraged Long + Income XRP ETF. It is designed to give investors 150 to 200 percent leveraged exposure to XRP’s daily price moves. On top of that, it uses an options-based income strategy, which means it aims to generate steady returns while amplifying exposure to XRP. The primary goal is long-term growth, but investors could also benefit from current income.
Interestingly, the proposal also includes a similar leveraged ETF for Solana (SOL), showing that Wall Street-backed crypto funds are starting to diversify beyond the usual Bitcoin and Ethereum focus.
Why This Matters for Investors
For large institutions such as pension funds, insurance firms, and retirement portfolios, such products could make XRP exposure much easier. Instead of directly holding the token or trading on crypto exchanges, these investors can access XRP through a regulated financial product. This could bring new liquidity to the XRP market and possibly drive deeper adoption.
The timing is also notable. Earlier this year, NYSE Arca approved the listing of Teucrium’s 2x Long Daily XRP ETF, which quickly attracted over $284 million in assets and later crossed $400 million by August. This shows a strong appetite for leveraged XRP products.
Bill Morgan’s Reality Check
Despite the excitement, not everyone is focused on ETFs. Crypto lawyer Bill Morgan highlighted that sophisticated players like Tidal Trust II are already seeking leveraged strategies tied to XRP, but he argued that the community should also pay attention to fundamentals. In his view, flipping Cardano (ADA), which still holds a $13 billion market cap lead over XRP, may be a more immediate milestone.
Regulatory Winds Turning
The filing comes amid shifting US regulations. After Ripple’s lawsuit saw a positive resolution, the SEC removed Ripple’s five-year fundraising cap, allowing the company to raise unlimited funds from accredited investors. At the same time, SEC Chair Paul Atkins recently stated that “very few” tokens should be classified as securities. He also introduced Project Crypto, an initiative aimed at updating securities laws for blockchain-based markets.
Although spot XRP ETF decisions from other firms have been delayed until October, ETF analyst Nate Geraci believes final approvals could come by then, given that it is the last deadline.
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