Tidal Trust II Files Major Amendment for XRP and SOL ETFs as October Deadlines Loom

Bottom Line Up Front: Tidal Trust II has submitted a significant post-effective amendment to the SEC for new XRP and SOL ETF products, adding momentum to the growing institutional demand for crypto ETFs as multiple XRP ETF decisions approach in October 2025.

Tidal Trust II has filed a post-effective amendment with the Securities and Exchange Commission on August 19, 2025, for the registration of new cryptocurrency ETF products including the "Defiance Leveraged Long + Income XRP ETF" and "Defiance Leveraged Long + Income SOL ETF." This development comes as the crypto ETF landscape rapidly evolves with multiple XRP ETF applications awaiting SEC decisions by October 2025.

Growing Institutional Momentum for XRP ETFs

The filing represents another significant step in the institutional adoption of XRP investment products. Currently, ProShares Ultra XRP ETF is the only approved XRP ETF in the US, while at least eleven asset managers have filed for an XRP exchange-traded fund, highlighting the massive institutional demand for regulated XRP exposure.

Total Market Potential: Industry experts predict that if 20 financial institutions launch XRP ETFs with an average of $500 million in assets under management (AUM) each, they could collectively hold around 4 billion XRP tokens. This figure represents nearly 6.9% of the circulating supply, creating significant supply constraints similar to what occurred with Bitcoin ETFs.

The SEC is expected to announce its final decision on most XRP ETF applications by October 2025, with Grayscale's application having the earliest deadline of October 18, 2025. The regulatory landscape has become increasingly favorable following the SEC dropping its case against Ripple and the installation of a pro-crypto administration.

Leveraged ETF Products Enter the Crypto Space

Tidal Trust II's new filings appear to focus on leveraged products that combine income generation with amplified exposure to XRP and Solana price movements. This represents an evolution in crypto ETF offerings beyond simple spot exposure, potentially appealing to sophisticated investors seeking enhanced returns through derivatives strategies.

As of August 5, 2025, 7 major issuers submitted amended S‑1 registration statements for their spot Solana ETFs, indicating strong institutional interest in altcoin ETF products beyond Bitcoin and Ethereum.

Market Context and Competition

The crypto ETF market has experienced explosive growth, with combined assets under management (AUM) in U.S.-listed Bitcoin and Ethereum ETFs reaching a record $138 billion by December 2024. By July 2025, total ETF assets reached an all-time high of $188 billion, with Ether-tracked products bringing in $226 million, Solana $22 million, and existing XRP products $11 million in weekly inflows.

Complete List of XRP ETF Applications Awaiting Approval:

1. Grayscale XRP Trust (October 18, 2025 deadline) - Converting $2.1B existing trust
2. 21Shares Core XRP Trust (October 19, 2025 deadline)
3. Bitwise XRP ETF (October 20, 2025 deadline)
4. Canary Capital XRP ETF (October 24, 2025 deadline)
5. WisdomTree XRP ETF (October 25, 2025 deadline)
6. Franklin Templeton XRP ETF (October 25, 2025 deadline)
7. CoinShares XRP ETF (October 25, 2025 deadline)
8. RexShares Rex-Osprey XRP ETF (delayed from July)
9. ProShares Multiple XRP Products (leveraged/inverse)
10. Tuttle Capital 2X Long XRP ETF
11. Volatility Shares XRP ETF (futures-based)

Liquidity Requirements: XRP stands out as having the highest average 1% market depth among major altcoins on vetted exchanges. XRP's market depth soared since the end of 2024, flipping SOL and doubling ADA, providing the strong liquidity foundation necessary for successful ETF launches. European ETFs demonstrate XRP liquidity boost of 40-60% post-launch, suggesting that ETF approval could further enhance market stability.

XRP/Ripple Analysis: Legal Clarity Drives Optimism

The regulatory environment for XRP has improved dramatically following the resolution of Ripple's legal challenges with the SEC. With the SEC dropping its case against Ripple, Garlinghouse believes XRP now has stronger legal standing, paving the way for increased institutional adoption.

Price Impact Potential: If XRP ETFs receive institutional backing similar to Bitcoin ETFs, ChatGPT projects multiple price scenarios: moderate institutional demand could drive XRP to $5-$7, stronger adoption could reach $7-$12 by 2026, and in a highly optimistic scenario with mass adoption, XRP could surge to $15-$25. Canada's first XRP Spot ETF has already reached $32M AUM, demonstrating strong demand.

Business Operations: Ripple's business operations could benefit substantially from ETF approval, as it would validate XRP's utility and regulatory compliance, potentially accelerating enterprise adoption of Ripple's payment solutions. The expiration of Ripple's 1,700 non-disclosure agreements could reveal major financial partnerships, further increasing demand.

Partnership Opportunities: ETF approval would likely increase corporate interest in partnering with Ripple for cross-border payment solutions, as institutional legitimacy removes regulatory uncertainty for potential partners. Banks like Santander could integrate XRP for real-time remittances with enhanced regulatory confidence.

Adoption Prospects: With regulatory clarity established, institutional demand could trigger a $30B altcoin ETF market by 2026. Ripple CEO Brad Garlinghouse anticipates approval in the second half of 2025, which could catalyze broader adoption of XRP in traditional financial institutions and payment processors.

Regulatory Streamlining Accelerates Timeline

The SEC has implemented new guidance that could significantly speed up the approval process. SEC guidance released July 7 outlines rules for custody, staking, and fraud prevention, potentially reducing launch times from 240 days to 75. This streamlined approach benefits all pending applications, including Tidal Trust II's latest filing.

Conclusion

Tidal Trust II's amendment filing adds to the mounting pressure on the SEC to provide clarity on XRP ETF approvals. With eleven applications representing potentially $4 billion in combined AUM awaiting decisions and multiple deadlines approaching in October, the next two months will be critical for determining whether XRP follows Bitcoin and Ethereum into the mainstream ETF market.

The combination of legal clarity, institutional demand representing 6.9% of circulating supply, superior liquidity metrics, and regulatory streamlining suggests the stage is set for significant developments in the XRP ETF space. European ETFs already demonstrate 40-60% liquidity improvements post-launch, indicating that approval could create a virtuous cycle of enhanced market stability and institutional adoption.

DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.

Sources

1. Crypto ETF Watchlist 2025: Key Filings, Top Players & What's Next
2. Full List of XRP ETFs Awaiting SEC Approval: Dates, Filings, and What's Next
3. Will There Be a Spot XRP ETF? The Ripple Effect Swells | etf.com
4. Ripple Spot ETF Timing: More Futures Funds Roll Out, Spot XRP Awaits SEC Nod
5. SEC Form N-1A Filing - Tidal Trust II Post-Effective Amendment No. 405 (August 19, 2025)