For a connected smooth proper rigid space X over a perfectoid field extension of Qp, we show that the Picard functor of X ♦ defined on perfectoid test objects is the diamondification of the rigid analytic Picard functor. In particular, it is represented by a rigid group variety if and only if the rigid analytic Picard functor is.As an application, we determine which line bundles are trivialized by pro-finiteétale covers, and prove unconditionally that the associated "topological torsion Picard functor" is represented by a divisible analytic group. We use this to generalize and geometrize a construction of Deninger-Werner in the p-adic Simpson correspondence: There is an isomorphism of rigid analytic group varieties between the moduli space of continuous characters of π1(X, x) and that of pro-finite-étale Higgs line bundles on X.This article is part II of a series about line bundles on rigid spaces as diamonds.1. The natural map (Pic X,ét ) ♦ → Pic ♦ X,ét is an isomorphism of sheaves on Perf K,ét .2. If moreover K is algebraically closed, then the v-Picard functor Pic ♦ X,v fits into a split exact sequence of abelian sheaves on Perf K,ét 0 → Pic ♦ X,ét → Pic ♦ X,v → H 0 (X, Ω 1 )(−1) ⊗ K G a → 0.