Amplify ETFs has unveiled its newest offering, the Amplify XRP 3% Monthly Premium Income ETF (XRPM). The fund focuses on providing exposure to XRP’s price fluctuations while generating high, recurring income through an actively managed options strategy. XRPM seeks to offer an annualized option premium target of 36%, approximately 3% per month, based on market conditions at the time of launch.
XRPM Structure: Combining Covered Calls and Long Exposure
The XRPM ETF’s portfolio consists of two main components. The first is a covered call strategy, which represents 30% to 60% of the portfolio. This strategy involves writing weekly out-of-the-money call options to collect premium income. The goal is to generate consistent income while preserving some upside potential if XRP’s price moves within the strike range of the options.
The second part of the portfolio is a long-only segment, which represents the remaining portion of the ETF. This allows the fund to benefit from unrestricted growth tied to XRP’s market performance. By using weekly contracts instead of monthly options, XRPM can capture premium income more frequently, offering up to four premium-collection opportunities per month.
Amplify has positioned XRPM as an innovative solution for those seeking both a steady income stream and exposure to XRP’s long-term growth.
XRP’s Growing Role in Global Payments Drives Demand for XRPM
XRP has become an increasingly important asset in the digital economy. As the fourth-largest cryptocurrency by market capitalization, XRP plays a central role in the XRP Ledger, an open-source blockchain focused on global payments. Its use extends beyond payments, as XRP is also used in tokenized assets and decentralized finance (DeFi) applications.
Amplify recognizes the growing relevance of XRP in the digital asset space, which influenced the creation of XRPM. By linking this ETF to XRP, the fund offers investors an opportunity to participate in the digital asset’s potential growth while benefiting from a steady income stream. Amplify’s CEO, Christian Magoon, emphasized the innovative nature of XRPM, describing it as a first-of-its-kind product that blends option income with XRP exposure.
Amplify’s introduction of XRPM marks a new phase in the development of crypto-linked investment products. The ETF offers a structured way to access the growth potential of XRP while balancing risk with income generation through an active management strategy.