Tidal Trust II has announced plans to liquidate its two exchange-traded funds (ETFs), the Defiance Daily Target 2X Short TSM ETF and the Defiance Daily Target 2X Short ASTS ETF. This decision comes after a recommendation from Tidal Investments LLC, the funds’ investment adviser, indicating that the closure and liquidation would be in the best interests of the funds and their shareholders.

The Board of Trustees of Tidal Trust II has agreed with this recommendation, marking a significant change in the company’s strategy. The liquidation process will commence with shares of both ETFs ceasing to trade on their respective exchanges, Cboe BZX and NYSE Arca, as of the close of regular trading on November 16, 2026.

Background

Tidal Trust II, incorporated in Delaware, operates as an investment entity. The company is known for its focus on exchange-traded funds, particularly those that offer leveraged exposure to market indices. This filing follows a series of recent filings, including multiple 485BXT forms and other regulatory documents, all dated November 4, 2026.

What the Filing Says

The SEC filing states, "Tidal Investments LLC informed the Board of Trustees of Tidal Trust II of its view that each Fund’s closure and liquidation would be in the best interests of each Fund and its shareholders." The filing outlines that shares will cease trading and be closed to purchase as of November 16, 2026.

Impact

The liquidation will directly affect shareholders of the Defiance Daily Target ETFs. Shareholders will have the opportunity to sell their holdings before the Closing Date, but they will face restrictions on trading from November 16 through November 20, 2026, during which time the funds will be liquidating their portfolios. This period may limit market access for shareholders, and they are advised to consult tax professionals regarding the potential tax implications of the liquidation.

What's Next

Following the liquidation, shareholders will receive cash distributions based on the net asset value of the funds, which will be treated as a taxable event. The filing does not specify further actions beyond the liquidation process.