Introduction to XRP-Based Exchange-Traded Options Fund
Amplify ETFs has launched the first XRP-based exchange-traded options fund, the Amplify XRP 3% Monthly Premium Income ETF (XRPM), expanding its YieldSmart family of options-focused ETFs. This new fund is designed to balance income generation and capital appreciation, providing access to XRP’s price dynamics while targeting high, recurring revenue through an actively managed covered call strategy.
The ETF seeks to generate a target annual options premium of 36%, which is approximately 3% per month based on market conditions at the time of its prospectus. The goal is to earn a stable income while partially benefiting from the weekly XRP price movements. 
Weekly Options Strategy for Income and Growth
The structure of XRPM divides the portfolio into two components: a covered call portion, which represents approximately 30-60% of the portfolio, and a long-only portion, which represents the remainder. In the covered segment, managers write out-of-the-money call options weekly with the aim of generating premium income while allowing limited upside potential should XRP rise within the strike range.
The long-only portion retains unlimited upside potential tied to XRP’s market performance. By using short-term weekly contracts instead of monthly options, the strategy allows for four times as many opportunities to collect premiums. Amplify positions XRPM as a way for investors to access XRP’s growth potential while benefiting from a steady stream of options income through a risk-aware, actively managed framework.
Amplify Highlights XRP’s Role in Global Payments
The launch coincides with the increasing adoption of XRP, currently the fourth-largest cryptocurrency by market capitalization. The digital asset serves as the native currency of the XRP Ledger, an open-source blockchain for global payments. Beyond payments, XRP supports tokenized assets and decentralized finance applications through its scalable infrastructure.
Its use by financial institutions and technology providers continues to underscore its relevance in the digital asset economy. “Amplify is excited to expand our crypto-linked YieldSmart range and join the XRP ecosystem with a unique product,” said Christian Magoon, CEO of Amplify ETFs. “With XRPM, investors gain access to an innovative approach that combines high options premium income with weekly upside potential tied to one of the world’s most established digital assets,” adds Magoon.
Fund Structure and Disclosures
The fund does not invest directly in XRP; returns instead come from options strategies tied to XRP’s price risk. Amplify Investments LLC is acting as advisor, Kelly Strategic Management LLC and Penserra Capital Management LLC are acting as subadvisors. Annual premium targets reflect market conditions at the time the prospectus comes into effect and may fluctuate. Distributions are not guaranteed.
XRPM marks a new entry into the growing universe of crypto-related income products, offering investors a structured way to generate income while participating in XRP’s potential long-term growth. For more information, visit https://cryptonews.com/news/amplify-launches-xrp-based-option-income-etf/
