Amplify ETFs has introduced a new addition to its income-focused lineup with the launch of the Amplify 3% Monthly Premium Income ETF, known as XRPM. The company, which manages more than 16 billion dollars in assets, says this is the first option income ETF built around XRP, one of the largest digital assets in the market.
XRPM joins Amplify’s YieldSmart series, a group of funds that use covered-call strategies to generate steady income while keeping some exposure to potential price gains. Covered calls involve selling call options on an underlying asset in exchange for premiums. This provides recurring income, though it limits some upside if the asset rallies.
XRPM aims to deliver a 3 percent monthly income target, or roughly 36 percent annually, by writing weekly out of the money call options on 30 to 60 percent of its synthetic XRP exposure. The remaining portion stays unhedged to allow for additional growth if XRP moves higher. The fund does not hold XRP directly but uses derivatives to gain exposure.
Amplify CEO Christian Magoon described the fund as an innovative way for investors to combine high income potential with weekly exposure to a major digital asset. XRPM is actively managed, carries a 0.75 percent expense ratio, and distributes income each month. Amplify Investments serves as adviser, with Kelly Strategic Management and Penserra Capital Management handling sub-advisory roles.
XRP ETF momentum grows
XRP is currently the fourth largest cryptocurrency with a market capitalization of roughly 132 billion dollars. It powers the XRP Ledger, an open source blockchain built for fast and low cost global payments.
Interest in XRP themed funds has surged in recent weeks. Canary Capital launched the first standard spot XRP ETF on Nasdaq under the ticker XRPC, giving US investors direct access to the cryptocurrency. Despite the recent government shutdown, Nasdaq approved the listing under updated SEC guidance. XRPC recorded more than 58 million dollars in trading volume on its first day, marking the strongest ETF debut of the year among nearly 900 launches. Net inflows have already reached 268.5 million dollars.
Other firms including Bitwise, 21Shares, WisdomTree, and Grayscale have also filed for similar products. In September, REX Shares launched XRPR, a separate US based XRP ETF that holds XRP directly while allocating at least 40 percent of its assets to other XRP related funds.
