TLDR
- Amplify plans XRP ETF mixing crypto exposure with steady option income
- New XRP ETF Aims for Steady Income with Covered Calls on Crypto Assets
- Amplify’s XRP ETF Targets Yield via Weekly Call Options on XRP Products
- XRP ETF Proposal Combines Price Exposure with Monthly Options Premiums
- Crypto Meets Cash Flow: Amplify Plans Income-Focused XRP ETF on Cboe
Amplify Investments has submitted a prospectus for a new XRP ETF that blends cryptocurrency price tracking with an income-focused options strategy. The Amplify XRP ETF intends to generate steady monthly returns by selling call options on XRP-linked products while maintaining exposure to XRP price movements. If approved, the fund would be listed on the Cboe BZX Exchange and would be the latest in a growing line of crypto-related ETFs seeking regulatory clearance.
JUST IN: 🇺🇸 Amplify ETFs files for $XRP Monthly Option Income ETF. pic.twitter.com/pBviTUtIca
— Whale Insider (@WhaleInsider) August 29, 2025
XRP ETF Targets Monthly Option Income with Price Exposure
The proposed XRP ETF combines two elements: exposure to the price return of XRP and a systematic covered call strategy. The fund plans to sell call options slightly out of the money, typically 5–10%, with one-week or shorter maturities. It will adjust its weekly option activity to maintain a consistent annualized premium target.
The fund aims to invest at least 80% of its assets in XRP-related financial instruments, including XRP exchange-traded products (ETPs). These XRP ETPs reflect the price of XRP and hold it in secure digital vaults, but are not registered under the 1940 Act. Amplify will use the notional value of its options positions to meet its 80% exposure requirement.
The fund will invest indirectly through a Cayman Islands-based subsidiary overseen by Amplify and its appointed sub-advisers. This structure allows flexibility in managing crypto exposure while adhering to U.S. regulatory standards for investment companies. It also ensures compliance with tax and valuation regulations under the 1940 Act.
SEC Faces Surge in Crypto ETF Filings
The filing comes amid a significant backlog at the U.S. Securities and Exchange Commission, which is reviewing over 90 crypto-related applications. These include spot ETFs for various tokens like XRP, Solana, and Litecoin from firms such as Grayscale and 21Shares. The growing interest follows the SEC’s July decision allowing in-kind creations and redemptions for crypto ETFs.
Amplify’s move signals confidence in shifting regulatory sentiment and increased demand for structured crypto products. Unlike spot ETFs, the XRP ETF seeks to generate consistent cash flow via options premiums. This income-first approach sets it apart from purely price-tracking crypto funds.
The fund also mirrors Amplify’s earlier crypto-related offerings, including a blockchain equity ETF and a Bitcoin option income ETF. If approved, the XRP ETF would expand Amplify’s presence in the digital asset space while offering a differentiated product for those seeking yield rather than pure speculation.
Taxation and Valuation Measures Outlined for XRP ETF
The prospectus highlights the tax treatment of the XRP ETF’s distributions, which will be classified as ordinary income. Capital gain dividends, if distributed, are treated as long-term regardless of holding period. Some distributions may also be considered returns of capital and affect cost basis.
NAV will be calculated daily using market quotes when available, or fair value when markets are inactive or unreliable. Amplify has designated itself as the valuation agent and will follow strict internal procedures for fair pricing. These methods ensure accurate pricing even during periods of market dislocation or limited trading.
The XRP ETF plans to use FLEX Options for most call positions due to their customizable nature and exchange-traded status. However, it may utilize standard listed options when appropriate. The fund’s structure and tax handling are designed to align with investor expectations and regulatory compliance.
