The U.S. Securities and Exchange Commission (SEC) has received a filing for the Defiance Leveraged Long + Income XRP ETF, a new fund created under Tidal Trust II.
Submitted as part of a post-effective amendment, the product represents a significant step toward an XRP-focused leveraged fund introduction within the regulated U.S. framework.
Soon after the filing appeared, Diana (@InvestWithD), a cryptocurrency commentator and XRP advocate, broke down its potential implications in a detailed thread on X. She emphasized that the product is not only about speculative leverage but also about treating XRP as an income-generating asset.
🚨BREAKING: SEC JUST RECOGNIZED A LEVERAGED + INCOME XRP ETF 🚨
The filing is not just another spot ETF — this is the Defiance Leveraged Long + Income XRP ETF, created under Tidal Trust II and now officially entered into the SEC’s system.
Here’s why this filing is a… pic.twitter.com/ZTR8fwAi7R
— Diana (@InvestWithD) August 28, 2025
Leverage and Income Features
Diana began by pointing to the leveraged design of the ETF. She described it as a “Leveraged Long XRP ETF” that allows investors to magnify exposure to XRP’s price movements. Both gains and losses would be multiplied, which, in her words, shows that “institutions want to bet BIG on XRP’s upside.”
This product is different from a spot ETF because it caters more to traders and institutions seeking amplified returns. Multiple leveraged XRP ETFs have been approved in 2025. Some prominent ones, such as Teucrium’s products, have outperformed expectations, showing the massive demand for XRP-related financial products.
She then highlighted the second feature: income. Unlike typical leveraged products, this ETF incorporates a yield component. According to her, it “doesn’t just ride price swings” but also provides cash flow while holding leveraged exposure. This design indicates that financial markets see XRP as more than just a cryptocurrency.
SEC Recognition and Market Impact
On regulatory standing, Diana noted that the ETF has been “filed under Tidal Trust II and now formally in the SEC’s system.” For her, this step is vital because it confirms the product’s presence in the SEC’s framework rather than remaining theoretical. With other XRP ETF applications already under review, this adds another layer to ongoing developments around institutional access to XRP.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
Diana also discussed the broader market implications, explaining that while spot ETFs lend legitimacy to an asset, leveraged ETFs drive speculation and trading activity. When combined, the result could be higher volume and greater volatility. In her words, this dynamic sets the stage for “Wall Street mania meets crypto liquidity.”
The Bigger Picture
She closed her remarks by putting the development in context. According to Diana, the industry is witnessing the “financialization of XRP in real time,” describing institutional spot ETFs, leveraged products for traders, and stablecoin payment infrastructure.
She concluded that “the SEC just cracked the door open to leveraged + income XRP products,” and that such recognition signals preparation by financial institutions for more aggressive exposure to XRP.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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