Amplify Files XRP Option Income ETF With $12B in AUM

TLDR

• Amplify, with $12.6B AUM, files for an XRP Option Income ETF.
• The fund seeks exposure to XRP’s price movement through options strategies.
• ETF to be listed on Cboe BZX Exchange with a November launch.
• At least 80% of the fund’s assets will be invested in XRP-related financial instruments.
• The fund will not directly invest in XRP, differentiating it from spot XRP ETFs.

Amplify, an asset manager with $12.6 billion in assets under management (AUM), has filed for an XRP ETF. The filing aims to give institutional investors access to the altcoin. However, this new fund differs from the pending spot XRP ETFs, which are still awaiting SEC approval.

Amplify’s XRP Option Income ETF Set for November

Amplify’s XRP Option Income ETF will be listed on the Cboe BZX Exchange. The fund is expected to begin trading in November. The filing highlights that the ETF aims to benefit from the price movement of XRP.

The fund will primarily generate returns by selling options on XRP ETFs, which reference the price of the altcoin. In addition, it will hold shares of XRP ETFs, which will contribute to the fund’s long-term exposure. Amplify plans to invest at least 80% of its assets in financial instruments related to XRP.

The fund’s investment strategy will also include holding ETF options for synthetic exposure to the XRP ETF market. Amplify will use options strategies, such as buying call options and selling put options at the same strike price. Additionally, the fund may also purchase in-the-money call options.

Fund’s Composition and Strategy

The remaining 20% of the fund’s assets will be allocated to U.S. Treasuries, cash, or cash-equivalent investments. Amplify emphasized that the fund will not directly invest in XRP. This sets it apart from the spot XRP ETF applications that seek direct exposure to the altcoin.

Amplify’s filing adds to the growing list of XRP ETF applications in the United States. There are now 16 applications for XRP ETFs, seven of which are spot ETFs from major asset managers such as Grayscale, 21Shares, and WisdomTree.

The application by Amplify signals the increasing interest in XRP-based financial products. Market experts predict that the SEC could approve these funds by October. As a result, they anticipate a surge in demand for XRP-related ETFs, following the success of CME XRP futures and other futures-based ETFs.

The SEC’s decision will be crucial in determining the future of XRP investment options. With multiple applications under review, the approval of XRP ETFs could shape the market landscape. Amplify’s filing demonstrates its confidence in the growing demand for XRP exposure.