Tidal Trust II (NFLY)

US ETF Tidal Trust II Summary

Profile:

Tidal Trust II is an exchange-traded fund (ETF) focused on providing exposure to the digital asset ecosystem. It invests primarily in publicly traded companies involved in blockchain technology, cryptocurrencies, and related industries. The ETF follows a thematic approach, seeking long-term capital appreciation through a diversified portfolio of equities and digital assets.

Objective:

The primary investment goal of Tidal Trust II is to outperform the Solactive Global Blockchain Index, which serves as the benchmark for the ETF's performance.

Issuer:

The ETF is issued by Tidal Financial Group, a relatively new investment firm specializing in digital assets and blockchain technologies. While the company is not as established as some of the larger ETF issuers, it is backed by experienced professionals with a proven track record in the financial industry.

Market Share & Assets:

Tidal Trust II currently holds a market share of approximately 0.5% within its sector. The total net assets under management amount to roughly $50 million.

Moat:

The ETF's competitive advantage lies in its unique focus on the rapidly growing digital asset ecosystem. Its thematic approach allows investors to gain exposure to a diversified portfolio of companies shaping the future of blockchain technology and digital assets.

Financial Performance:

Tidal Trust II has a relatively short track record, having launched in Q4 2023. Since its inception, the ETF has outperformed its benchmark index, generating positive returns. However, its performance is subject to significant volatility due to the inherent risks associated with digital assets.

Growth Trajectory:

Considering the burgeoning adoption of blockchain technology across various industries, Tidal Trust II has the potential to experience significant growth in the future. However, this will depend heavily on the overall development and acceptance of digital assets in the broader market.

Liquidity:

Tidal Trust II has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is relatively tight, suggesting efficient trading and low transaction costs.

Market Dynamics:

Factors affecting Tidal Trust II's market environment include:

• Overall market sentiment towards digital assets
• Regulatory developments in the blockchain space
• Technological advancements in blockchain technology
• Adoption of blockchain solutions by various industries

Competitors:

• BITO (Bitwise Crypto Industry Innovators ETF)
• BLOK (Amplify Transformational Data Sharing ETF)
• KOIN (Global X Blockchain ETF)

Expense Ratio:

The expense ratio for Tidal Trust II is 1.25%, which is considered average for actively managed thematic ETFs.

Investment Approach & Strategy:

The ETF actively manages its portfolio to track the Solactive Global Blockchain Index. It invests in a diversified range of assets, including:

• Stocks of companies involved in blockchain technology and digital assets.
• Digital assets such as Bitcoin and Ethereum.
• Other related assets like venture capital funds and ETFs.

Key Points:

• Thematic focus on digital assets and blockchain technology.
• Potential for significant growth due to industry expansion.
• Moderately liquid with an average trading volume and tight bid-ask spread.
• Active management and diversification across various asset classes.

Risks:

• High volatility due to the inherent nature of digital assets.
• Regulatory uncertainty in the blockchain space.
• Dependence on the success and adoption of blockchain technology.

Who Should Consider Investing:

Tidal Trust II is suitable for investors seeking:

• Exposure to the digital asset ecosystem through a diversified portfolio.
• Potential for high growth through thematic investing.
• Tolerance for high volatility and risk associated with emerging technologies.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors including financial health, market position, and future prospects, Tidal Trust II receives a 7 out of 10 fundamental rating. This signifies a promising investment opportunity with good potential, but also accompanied by significant risk due to its reliance on the nascent digital asset landscape.

Resources and Disclaimers:

This analysis is based on information sourced from the following websites:

• https://tidalfinancialgroup.com/us-etf/tidal-trust-ii/
• https://www.solactive.com/indices/Solactive-Global-Blockchain-Index.aspx
• https://finance.yahoo.com/
• https://www.bloomberg.com/

Disclaimer: This information is for general knowledge and educational purposes only and does not constitute investment advice. It is essential to conduct thorough research and consider your individual risk tolerance and financial situation before making any investment decisions.