Amplify Files for XRP Option Income ETF with SEC
Amplify Enters XRP ETF Race with Options Strategy
Asset manager Amplify, with $12.6 billion in assets under management (AUM), has filed with the SEC for an XRP ETF. This new fund aims to provide institutional investors with exposure to XRP through a unique options-based approach.
The proposed XRP Option Income ETF stands apart from the pending spot XRP ETF applications, which are currently awaiting a decision from the SEC.
Fund Details and Strategy
According to the SEC filing, Amplify plans to list and trade shares of the XRP Option Income ETF on the Cboe BZX Exchange, with a target launch in November.
The fund seeks to generate income from XRP price movements by selling options on XRP ETFs. Key aspects of the investment strategy include:
- Investing at least 80% of net assets in financial instruments providing exposure to the XRP price.
- Holding shares of XRP ETFs for long-term exposure.
- Utilizing ETF options for synthetic exposure, potentially through purchasing call options and selling put options with the same strike price and expiration.
The remaining 20% of the fund's net assets will be allocated to U.S. Treasuries, cash, or cash-like investments. Amplify emphasizes that the fund will not directly invest in XRP, distinguishing it from spot ETF proposals.
Growing Interest in XRP ETFs
Amplify's filing brings the total number of XRP ETF applications in the U.S. to 16. This includes seven spot ETF applications from firms like Grayscale, 21Shares, Canary, Bitwise, Wisdomtree, CoinShares, and Franklin Templeton.
Bloomberg analyst James Seyffart previously noted at least 96 crypto-related ETF filings with the SEC, with XRP and Solana leading in the number of applications.
Market expert Nate Geraci anticipates potential SEC approvals for these funds by the October deadline, suggesting strong demand for XRP ETFs based on the performance of CME XRP futures and futures-based ETFs.