Amplify Investments has filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for its XRP-based monthly options income exchange-traded fund (ETF).
The document submitted by the company included the following statements:
“The Amplify XRP [ ]% Monthly Option Income ETF aims to provide a balance between high income and capital appreciation through investing in the price return of XRP and a covered call option strategy.”
Options income ETFs aim to provide investors with monthly income through options strategies. Amplify's application comes amid a surge in applications for altcoin-based funds, which the SEC has yet to rule on. Companies like Grayscale, 21Shares, and Bitwise have already filed for spot ETFs tracking coins like XRP, Litecoin, Dogecoin, and Solana.
Last year, spot Bitcoin and Ethereum ETFs attracted billions of dollars in investment. The SEC's stance on cryptocurrency ETFs has shifted, particularly since Donald Trump took office earlier this year. In July, the agency adopted regulations authorizing in-kind creation and redemptions in crypto ETFs for authorized participants. According to Bloomberg, as of August 28, the SEC had more than 90 crypto-focused applications under review.
If approved, this ETF wouldn't be Amplify's first crypto-focused fund. The company has previously launched a fund investing in stocks of companies involved in the development and use of blockchain technologies and another fund that aims to generate income through a covered call option strategy tied to Bitcoin's price return.
*This is not investment advice.
