Amplify ETFs has introduced the market’s first exchange-traded fund (ETF) designed to generate income from XRP options. The new fund, named the Amplify XRP 3% Monthly Premium Income ETF (XRPM), joins the firm’s YieldSmart family of products, which focus on balancing income generation with potential capital growth.

XRPM provides investors with exposure to the price movements of XRP while pursuing recurring income through an actively managed covered call strategy. The fund aims for a target annualized option premium of 36%, or about 3% per month, based on market conditions at the time of its prospectus. Its primary goal is to deliver a steady income stream while still capturing some of the upside from XRP’s weekly price changes.

A Weekly Strategy for Income and Growth

The fund’s portfolio is divided into two main parts. The first, making up 30% to 60% of the portfolio, is dedicated to the covered call strategy. In this segment, managers write weekly out-of-the-money call options to collect premium income, which allows for limited upside if XRP’s price appreciates within the strike range.

The remainder of the portfolio is a long-only component, which preserves unrestricted upside potential tied directly to XRP’s market performance. By employing weekly contracts instead of monthly ones, the strategy creates four times as many opportunities to collect premiums throughout the year.

XRP’s Role in Global Payments

The launch comes as XRP, currently the fourth-largest cryptocurrency by market capitalization, continues to see growing adoption. As the native currency of the XRP Ledger, the digital asset underpins an open-source blockchain built for efficient global payments. Beyond its core function, the network also supports tokenized assets and decentralized finance (DeFi) applications.

Christian Magoon, CEO of Amplify ETFs, commented on the new product, stating that the firm is excited to expand its crypto-linked lineup and join the XRP ecosystem. “With XRPM, investors gain access to an innovative approach that combines high option premium income with weekly upside tied to one of the world’s most established digital assets,” Magoon added.

Fund Structure and Key Disclosures

It’s important to note that the fund does not invest directly in XRP. Instead, its returns are derived from options strategies linked to XRP’s price movements. Amplify Investments LLC serves as the adviser for the fund, with Kelly Strategic Management LLC and Penserra Capital Management LLC acting as sub-advisers.

Amplify also clarifies that the annual premium targets are based on market conditions at the time the prospectus became effective and are subject to change. Furthermore, distributions to investors are not guaranteed. XRPM represents a new development in the expanding field of crypto-linked income products, offering a structured vehicle for participating in XRP’s potential growth.