Tidal Trust I has announced that it will not proceed with the planned reorganization of two of its exchange-traded funds (ETFs) into Tidal Trust II. This decision comes after Hilton Capital Management, a proposed sub-adviser for the new funds, requested potential changes to the investment strategies.

The reorganization was initially approved by the Board of Trustees on October 2, 2026, and would have involved the Sound Equity Dividend Income ETF reorganizing into the Hilton Dividend & Yield Equity ETF, and the Sound Enhanced Fixed Income ETF reorganizing into the Hilton NCA Enhanced Fixed Income ETF. However, the necessary proxy statement and meeting for shareholder approval had not yet been scheduled.

According to the filing dated November 3, 2026, "the Trust and the Acquiring Trust have determined not to proceed with the previously announced Reorganizations at this time." Hilton is considering changes to the proposed funds and intends to present the reorganizations to the Board again once these adjustments are made.

In the meantime, Tidal Trust I will continue to serve as the investment adviser for the existing funds, while Sound Income Strategies, LLC will remain the investment sub-adviser. Tidal and Sound will manage the funds in accordance with their current investment objectives and strategies.

Shareholders of the affected funds can reach out for more information at 833-916-9056. As Tidal Trust I navigates these changes, the industry may see a trend of similar reorganizations being paused or reassessed as firms adapt to evolving market conditions.