XRP News Today: Institutional Investors Get Regulated Access to XRP via Leveraged ETF Strategy

Tidal Trust II has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch the Defiance Leveraged Long + Income XRP ETF, a product offering 150–200% leveraged exposure to XRP’s daily price performance. The ETF also incorporates an options-based income strategy to generate additional returns and reduce leverage-related risks. This filing marks a significant step in the expansion of Wall Street-backed crypto investment products beyond Bitcoin and Ethereum, with Tidal Trust II also proposing a similar product for Solana (SOL). The filing includes a Form N-1A Post-Effective Amendment, indicating a regulated approach to accessing XRP for institutional investors [1].

The new ETF aims to provide long-term capital appreciation while offering secondary income through credit call spreads. This structure could attract pension funds, insurance providers, and retirement portfolios, which might now have a regulated vehicle to engage with XRP without direct token ownership or exposure to unregulated crypto markets. The product is expected to enhance XRP market liquidity and potentially drive deeper adoption. This comes on the heels of NYSE Arca’s approval of Teucrium’s 2x Long Daily XRP ETF, which attracted over $284 million in assets within four months and exceeded $400 million by August [2].

Regulatory developments have played a crucial role in shaping the current landscape. The SEC recently lifted Ripple’s five-year fundraising cap, allowing the company to raise unlimited funds from accredited investors without registration. SEC Chair Paul Atkins has also suggested that only a "very few" tokens should be classified as securities, signaling a potential shift in regulatory stance. The agency has launched Project Crypto, an initiative to update securities laws for blockchain-based markets. While decisions on spot XRP ETFs from other firms have been delayed until October, ETF analyst Nate Geraci has indicated that final approvals could still be reached by the end of the deadline [1].

The filing highlights broader industry momentum in institutional-grade crypto exposure. As major players like Teucrium and Tidal Trust II move forward with leveraged XRP ETFs, the market is beginning to see increased institutional interest. The regulatory softening and growing appetite for altcoin exposure may further accelerate XRP’s adoption. However, analysts such as Bill Morgan have urged the community to remain focused on fundamentals, noting that while leveraged products are gaining traction, key milestones—such as a potential Cardano (ADA) market cap flip over XRP—remain relevant [2].

Crypto lawyer Bill Morgan has emphasized that while Wall Street-backed leveraged strategies are gaining momentum, the broader XRP ecosystem should continue to monitor key on-chain metrics and market dynamics. The filing by Tidal Trust II reflects a broader trend of institutional-grade investment vehicles seeking to diversify into altcoins like XRP and SOL. This shift could redefine how institutional investors approach crypto markets, offering them more accessible and regulated avenues to participate in digital assets without relying on over-the-counter trading or unregulated platforms [2].

Source:

[1] XRP News: Tidal Trust II Files Leveraged Long XRP ETF with SEC (https://coingape.com/xrp-news-tidal-trust-ii-files-leveraged-long-xrp-etf-with-sec/)

[2] Tidal Trust Files Leveraged Long XRP ETF, Wall Street Bets Big (https://coinpedia.org/news/xrp-etf-news-tidal-trust-files-leveraged-long-xrp-etf-wall-street-bets-big/)

[3] Solana vs Ripple's XRP: Which Will Get an ETF First? (https://cryptorank.io/news/feed/a46e6-solana-vs-ripples-xrp-which-will-get-an-etf-first)