Tidal Trust II has made a significant announcement regarding the future of its investment products. The company has decided to liquidate its Defiance Daily Target 2X Short RKLB ETF, effective November 16, 2026. This decision comes after a recommendation from Tidal Investments LLC, the fund's investment adviser, suggesting that closure and liquidation would be in the best interests of the fund and its shareholders.

This liquidation marks a pivotal moment for Tidal Trust II as it navigates the competitive landscape of the investment industry. The decision to close the ETF reflects ongoing challenges within the market, particularly for funds that struggle to maintain investor interest and performance.

Background

Tidal Trust II is an investment entity incorporated in Delaware. The company is known for its focus on exchange-traded funds (ETFs), including the recently targeted Defiance Daily Target 2X Short RKLB ETF, which trades under the ticker symbol RKLZ on The Nasdaq Stock Market. The company has undergone changes in its structure and branding, previously operating as Tidal ETF Trust II until a name change in April 2022.

What the Filing Says

The recent SEC filing indicates that Tidal Investments LLC informed the Board of Trustees of Tidal Trust II about the necessity of the fund's closure. The Board, after careful consideration, agreed that liquidation was in the best interests of both the fund and its shareholders. According to the filing, "the Fund will cease trading on The Nasdaq Stock Market... and will be closed to purchase by investors as of the close of regular trading on Nasdaq on November 16, 2026."

Impact

This decision will primarily affect shareholders of the Defiance Daily Target 2X Short RKLB ETF, who will need to navigate the liquidation process. Shareholders can sell their holdings before the Closing Date, but after that, trading will be restricted. The liquidation process will involve distributing cash pro rata to all shareholders of record who have not previously redeemed or sold their shares.

What's Next

Following the closure of trading on November 16, 2026, the fund will enter a liquidation phase until November 20, 2026. During this time, the fund will liquidate its assets and distribute cash to shareholders. The filing does not specify any further actions beyond this liquidation process.

For more information, shareholders are encouraged to contact the fund directly.