ETLS — Defiance Ethereum LightningSpread™ Income ETF

ETLS Fund Overview

ETLS — Defiance Ethereum LightningSpread™ Income ETF is a US ETF managed by Tidal Trust II, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Tidal Trust II
• Category: Money Market
• Ticker: ETLS
• SEC CIK: 0001924868
• SEC series ID: S000101332
• Share class ID: C000271479

ETLS Investment Objective and Strategy

Defiance Ethereum LightningSpread™ Income ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Tidal Trust II.

Investment objective

The Funds primary investment objective is to seek current income.

Principal investment strategy

The Fund is an actively managed exchange-traded fund (ETF) that seeks (i) to generate income and (ii) capital appreciation. The Funds strategy combines (1) synthetic long exposure to the share price of the Grayscale Ethereum Staking ETF (the ETHE or the Underlying ETP), and (2) the use of options strategies designed to generate options premiums. The Fund will also maintain an allocation to cash, money market funds, or U.S. Treasuries (generally 50% to 100% of assets) to provide liquidity, serve as margin, and collateralize its derivative positions. ETHE is a passive, single-asset investment vehicle that, under normal circumstances, holds Ethereum (Ether), a digital asset. ETHE is not registered under the Investment Company Act of 1940 and is not subject to the same regulatory requirements applicable to registered investment companies.

From time to time, when the Adviser determines it necessary or appropriate (e.g., due to market, regulatory or operational constraints), the Fund may substitute for the Underlying ETP other pooled vehicles (i.e., other ETFs or exchange-traded products) with substantially similar investment objectives and strategies as the Underlying ETP (Alternative Underlying ETPs). The Fund does not invest directly in Ether or any other digital assets. The Fund does not invest directly in derivatives that track the performance of Ether or any other digital assets. The Fund does not invest in or seek direct exposure to the current spot or cash price of Ether. Investors seeking direct exposure to the price of Ether should consider an investment other than the Fund. For additional details about ether and the Ethereum blockchain, see the prospectus section titled Additional Information About the Funds.

Synthetic Exposure to the Underlying ETP Rather than purchasing shares of the Underlying ETP directly, the Fund seeks to achieve its investment objective by establishing synthetic exposure to the Underlying ETP through derivative instruments. These instruments include combinations of long at-the-money call options and short put options on the Underlying ETP (synthetic long positions), total return swaps referencing the Underlying ETP, and, from time to time, in-the-money call options. These instruments are designed to provide economic exposure comparable to that of directly holding the Underlying ETP, as their values generally move in close correlation with the price of the Underlying ETP. Through these positions, the Fund seeks to maintain investment exposure approximately equal to 100% of the Underlying ETP over the term of the contracts.

However, tracking differences may occur prior to expiration. Options Strategies Seeking Premiums Separately, the Fund employs options strategies focused on generating option premiums. The primary strategy involves selling (writing) put spreads on the Underlying ETP with weekly or shorter expirations. By selling put spreads, the Fund receives premiums from counterparties that pay for the right to sell at a specified price. These premiums are an important driver of the Funds cash distributions. The Adviser typically executes one or more option trades each week as part of this strategy, although actual results will vary and are not guaranteed. Selling put spreads exposes the Fund to potential losses if the price of the Underlying ETP declines between the strike prices of the sold and purchased puts.

While option selling can generate recurring premiums, it also increases downside risk. The Adviser may adjust strike levels, frequency, or other parameters of the options strategy based on market conditions and volatility. The Funds options activity is expected to result in high portfolio turnover. For additional details about the Funds options strategies, see the prospectus section titled Additional Information About the Funds. Cash Distributions The Fund seeks to provide cash distributions on a twice weekly basis. Options premiums earned through the Funds options strategies contribute to the Funds cash distributions. Actual distribution amounts will vary based on market conditions, realized option premiums, and Fund performance. Distributions may include income, capital gains, and/or a return of capital (ROC).

ROC generally represents a return of an investors own capital rather than income generated by the Funds investments. If the Funds returns are insufficient to meet its targeted distribution levels, distributions will reduce the Funds net asset value (NAV). See the prospectus section titled Additional Information About the Funds for further details on ROC and option premiums. Additional Fund Attributes Under normal circumstances, the Fund will invest so that at least 80% of its net assets, plus any borrowings for investment purposes, have economic exposure to the Underlying ETP through derivative instruments. For the purposes of this policy, Underlying ETP refers to ETHE as well as any Alternative Underlying ETPs. The Fund is classified as a non-diversified investment company under the 1940 Act, which means that the Fund may invest a high percentage of its assets in a fewer number of issuers.

The Funds investment exposure will be concentrated in (or substantially exposed to) the same industry or groups of industries, if any, to which the Underlying ETP is concentrated. There is no guarantee that the Funds investment strategy will be successful, and investors may lose some or all of their investment. Grayscale Ethereum Staking ETF ETHE The Grayscale Ethereum Staking ETF (ETHE) is a passive, single-asset investment vehicle that, under normal circumstances, holds Ethereum (Ether) which are digital assets that are created and transmitted through the operations of the peer-to-peer Ethereum network, a decentralized network of computers that operates on cryptographic protocols. ETHE seeks to reflect the value of Ether it holds, less its expenses and other liabilities. Shares of the ETHE are intended to provide investors with exposure to Ether in a manner similar to a direct investment, but without the complexities of acquiring, holding, or safekeeping Ether directly.

ETHEs investment objective is for the value of its shares (based on Ether per Share) to reflect the value of Ether it holds, less ETHEs expenses and other liabilities. Before making an investment decision an investor should carefully review ETHEs prospectus and risk factors. Source of Grayscale Ethereum Staking ETF Information The information contained herein regarding ETHE has been derived from publicly available sources, including ETHEs filings with the SEC. Investors should review ETHEs SEC filings, including its registration statement (prospectus), annual and quarterly reports, and other publicly available materials to obtain a more complete understanding of ETHEs operations, risks, and financial condition. The description of ETHEs principal investment strategies was drawn directly from ETHEs prospectus, dated July 22, 2024.

You can find ETHEs prospectus and other information about ETHE, including the most recent periodic SEC reports, online by reference to the 1933 Act Registration File No. 333-278880 through the SECs website at www.sec.gov . This document relates solely to the securities offered hereby and does not relate to the shares of ETHE or any other securities issued by ETHE. The Fund has derived all disclosures regarding ETHE contained herein exclusively from publicly available information. None of the Fund, Tidal Trust II (the Trust), the Adviser, or any of their respective affiliates has participated in the preparation of ETHEs offering materials or made any due diligence inquiry with respect to such information. None of the Fund, the Trust, the Adviser, or their respective affiliates makes any representation or warranty as to the accuracy or completeness of ETHEs publicly available filings or other information.

No assurance can be given that all events occurring prior to the date hereof, events that could affect the trading price of ETHE and, consequently, the value of the Funds investments, have been publicly disclosed. Subsequent disclosure of, or failure to disclose, material events concerning ETHE could affect the market value of ETHE and, accordingly, the value of the securities offered hereby. None of the Fund, the Trust, the Adviser, or their respective affiliates makes any representation as to the performance of ETHE. NONE OF THE FUND, TIDAL TRUST II, OR TIDAL INVESTMENTS LLC IS AFFILIATED, CONNECTED, OR ASSOCIATED WITH GRAYSCALE INVESTMENTS, LLC (GRAYSCALE) OR THE GRAYSCALE ETHEREUM STAKING ETF. THE FUND WAS NOT DEVELOPED OR CREATED BY, AND IS NOT SPONSORED, ENDORSED, OR APPROVED BY GRAYSCALE OR THE GRAYSCALE ETHEREUM STAKING ETF.

Moreover, neither Grayscale or ETHE has participated in the development of the Funds investment strategy. Neither of them selects or approves the Funds portfolio holdings, nor do they participate in the construction, design or implementation of the Fund. Neither provides any assurances, guarantees or representations regarding the Fund or its performance. Nothing herein shall be construed as an offer of any security by Grayscale or ETHE. None of the Fund, the Trust, the Adviser, or their respective affiliates claim any ownership interest in any trademarks owned by Grayscale, ETHE, or any of their affiliates. All rights in the trademarks are reserved by their respective owners.

ETLS Costs and Fees

ETLS costs about $101 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.01%
• Gross expense ratio: 1.01%

ETLS Debt Constituents

No individual debt constituents are reported in Defiance Ethereum LightningSpread™ Income ETF's latest SEC N-PORT filing.

ETLS Prospectus and SEC Filings

Official Defiance Ethereum LightningSpread™ Income ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2026-02-09

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Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.