Amplify ETFs has launched the first option income exchange-traded fund tied to XRP, introducing the Amplify XRP 3% Monthly Premium Income ETF (XRPM). The new fund expands the firm’s YieldSmart lineup, which focuses on delivering stable income while preserving opportunities for capital appreciation.
XRPM offers exposure to XRP’s price behavior through an actively managed covered call strategy aimed at generating recurring premium income. The ETF targets an annualized option premium of roughly 36% about 3% per month based on market assumptions made at the time of its prospectus.
Weekly covered call strategy targets income and upside
The ETF splits its holdings into two primary components: a covered call portion representing 30%–60% of the portfolio, and a long-only segment that maintains broader exposure to XRP price movements.
On the income-generating side, managers write weekly out-of-the-money call options designed to collect premiums while still leaving room for limited upside should XRP rise within the contract’s strike range.
The long-only portion allows full participation in market gains, while the use of weekly rather than monthly options multiplies premium-collection opportunities throughout the year. Amplify positions XRPM as a product that blends income generation with tactical exposure to one of the crypto market’s most established assets.
Launch highlights XRP’s expanding role in global payments
The fund’s debut coincides with rising interest in XRP, currently the fourth-largest cryptocurrency by market value. XRP powers the XRP Ledger, an open-source blockchain built for fast global payments and capable of supporting tokenization and decentralized finance use cases.
The ETF does not directly hold XRP; instead, its returns stem from options positions referencing XRP’s price. Amplify Investments LLC serves as adviser, with Kelly Strategic Management LLC and Penserra Capital Management LLC acting as sub-advisers. As with any income strategy, premium targets may fluctuate and distributions are not guaranteed.