Amplify Files for First XRP Income ETF With Options Strategy
Key Insights:
- Amplify has submitted the first XRP option income ETF with the SEC.
- The fund will use a covered-call strategy to generate monthly payouts.
- Unlike a spot ETF, it avoids custody risks by tracking XRP-linked instruments.
Asset manager Amplify Investments has submitted a proposal to the US Securities and Exchange Commission (SEC) for launching the first XRP-based “option income” exchange-traded fund (ETF).
The Illinois-based asset manager has filed to list the fund on the Cboe BZX Exchange. The fund aims to track XRP’s price and generate a regular income stream through a covered call options strategy.
Simply put, it will layer a conservative income on top of crypto’s volatility, funding monthly payouts via option sales.
Market observers note that crypto funds using derivatives have historically fared better with regulators than those holding digital assets directly.
In fact, the filing...
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