Defiance to Liquidate 2X Leveraged Red Cat ETF (RCAX)

Defiance is shutting down the Defiance Daily Target 2X Long RCAT ETF (RCAX), which seeks to deliver twice the daily performance of Red Cat Holdings. The fund's adviser, Tidal Investments, recommended the closure, which was approved by the Tidal Trust II Board of Trustees. RCAX will cease trading on Nasdaq and close to new purchases after November 23, 2026, with liquidation scheduled for November 30. Investors can sell their shares before the closing date, but liquidity may become limited during the liquidation period. The fund will progressively convert its holdings into cash, meaning it will no longer pursue its leveraged investment objective. Remaining shareholders will receive cash distributions based on their proportional holdings, with proceeds potentially triggering taxable capital gains or losses.