Tidal Trust submits another leveraged XRP ETF application to the SEC: Wall Street's new moves in XRP layout amid regulatory loosening | Crypto Assets ETF Depth Analysis

Tidal Trust II recently submitted a registration application to the SEC for the Defiance leveraged go long XRP ETF, aiming to provide 150%-200% daily return leverage and options income strategies. This filing comes at a time when the regulatory environment for Crypto Assets in the United States is softening - the SEC has lifted the funding cap on Ripple, and the chairman has stated that “very few tokens should be classified as securities.” Coupled with the market performance of the Teucrium leveraged XRP ETF, which raised $284 million in four months, it indicates that XRP is accelerating its integration into the TradFi system.

【Leverage XRP ETF Product Design and Institutional Participation Path】 According to the submitted N-1A form, the ETF employs a dual strategy: on one hand, it amplifies the daily price fluctuation returns of XRP through leverage (150%-200% exposure), and on the other hand, it uses a credit call spreads strategy to generate continuous cash flow. The main objective of the product is long-term capital appreciation, while the secondary objective is to create current income, while hedging leverage risk through options strategies. This provides institutional investors such as pension funds and insurance capital with a compliant way to participate in XRP leveraged investments without the need for a margin account, potentially significantly enhancing market liquidity and depth.

[Regulatory Environment Shift and Ripple Favorable Factors] Recently, the regulatory authorities have released multiple positive signals: the SEC has lifted the five-year financing restriction on Ripple, allowing it to raise unlimited funds from unregistered qualified investors; although the decisions on the spot XRP ETF for several companies have been postponed to October, ETF analyst Nate Geraci believes that approval is expected before the final deadline. More importantly, SEC Chairman Paul Atkins publicly stated that “very few tokens should be classified as securities” and launched the “Project Crypto” plan to update securities laws to adapt to the blockchain market, marking a shift in regulatory attitude from strict suppression to structural acceptance.

[Market Verification and Wall Street Capital Flow] The market performance of the Teucrium 2x leveraged XRP ETF (approved by the NYSE Arca) has become an important reference: this product reached an asset management scale of $284 million within four months, and in August it even surpassed $400 million, proving the strong institutional demand for leveraged XRP products. The follow-up filings by Tidal Trust further indicate that Wall Street is moving beyond Bitcoin/Ethereum, expanding structured investment products to altcoins like XRP and SOL, and the landscape of crypto asset investment is being restructured.

[Conclusion] The systematic shift in the continuous filing and regulatory environment of leveraged XRP ETFs is driving XRP’s evolution towards mainstream financial infrastructure. Although the SEC still faces delays in approving spot ETFs, leveraged products may receive approval more quickly by circumventing direct spot holdings through derivatives structures. Investors should pay attention to key regulatory milestones in October; if the applications are approved, XRP could witness a revolution in incremental funding from traditional financial channels.