Journalist
Tanzeel Akhtar
Journalist
Tanzeel Akhtar
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Amplify ETFs has introduced the first XRP-based option income exchange-traded fund, the Amplify XRP 3% Monthly Premium Income ETF (XRPM).
The new fund expands Amplify’s YieldSmart family—an options-focused ETF lineup designed to balance income generation with capital appreciation. XRPM offers exposure to XRP’s price dynamics while pursuing high, recurring income through an actively managed covered call strategy.
The ETF seeks to generate a target 36% annualized option premium—equivalent to approximately 3% per month—based on market conditions at the time of its prospectus. Its goal is to provide steady income while capturing partial upside from weekly XRP price movements.
Weekly Options Strategy Designed for Income and Growth
XRPM’s structure divides the portfolio into two components: a covered call portion representing roughly 30%–60% of the portfolio, and a long-only portion representing the remainder.
On the covered segment, managers write weekly out-of-the-money call options, aiming to collect premium income while still allowing limited upside should XRP appreciate within the strike range.
The long-only portion preserves unrestricted upside potential tied to XRP’s market performance. By using short-dated weekly contracts instead of monthly options, the strategy enables four times as many premium-collection opportunities.
Amplify positions XRPM as a way for investors to access XRP’s growth potential while benefiting from a steady stream of option income through a risk-aware, actively managed framework.
Amplify Highlights XRP’s Role in Global Payments
The launch coincides with growing adoption of XRP, currently the fourth-largest cryptocurrency by market capitalization. The digital asset serves as the native currency of the XRP Ledger, an open-source blockchain designed for global payments.
Beyond payments, XRP supports tokenized assets and decentralized finance applications through its scalable infrastructure. Its use by financial institutions and technology providers continues to underscore its relevance in the digital asset economy.
“Amplify is excited to expand our crypto-linked YieldSmart™ lineup and join the XRP ecosystem with a first-of-its-kind product,” said Christian Magoon, CEO of Amplify ETFs.
“With XRPM, investors gain access to an innovative approach that combines high option premium income with weekly upside tied to one of the world’s most established digital assets,” adds Magoon.
Fund Structure and Disclosures
The fund does not invest directly in XRP; returns instead stem from option strategies tied to XRP’s price exposure. Amplify Investments LLC serves as the adviser, with Kelly Strategic Management LLC and Penserra Capital Management LLC acting as sub-advisers.
Annual premium targets reflect market conditions at the prospectus effective date and may fluctuate, and distributions are not guaranteed.
XRPM marks a new entry in the expanding universe of crypto-linked income products, offering investors a structured way to generate income while participating in XRP’s potential long-term growth.
