Amplify Launches XRPM, the First U.S. XRP-Based Option Income ETF
Amplify ETFs has introduced XRPM, the first XRP-based option income ETF in the U.S., under the ticker XRPM. This fund is part of Amplify's YieldSmart family and aims to target 36% annualized option premium income, approximately 3% per month, with upside potential tied to XRP price movements based on conditions at the prospectus date.
The XRPM fund employs a weekly options strategy comprising two components: a covered call portion representing roughly 30% to 60% of assets, and a long-only portion for the remainder. In the covered-call segment, managers write weekly out-of-the-money calls to collect premiums, thereby capping upside within strike ranges. The long-only portion preserves unrestricted upside potential linked to XRP's market performance.
Using weekly short-dated contracts allows the fund to generate four times as many premium-collection opportunities as monthly options. XRPM does not invest directly in XRP; instead, its returns are generated from option strategies tied to XRP price exposure. Amplify Investments LLC serves as the adviser, with Kelly Strategic Management LLC and Penserra Capital Management LLC acting as sub-advisers.
XRP, the native currency of the XRP Ledger, is the fourth-largest cryptocurrency by market capitalization. It supports global payments, tokenized assets, and DeFi applications, making this launch in alignment with increasing XRP adoption.
Amplify CEO Christian Magoon described XRPM as an expansion of the YieldSmart lineup, offering an innovative product that provides high option income with weekly upside potential linked to XRP.
