Amplify ETFs launches first XRP option income ETF as demand grows for crypto-linked yield

Amplify ETFs has introduced the Amplify XRP 3% Monthly Premium Income ETF (ticker: XRPM), the first exchange-traded fund designed to generate recurring income using an options strategy linked to XRP. The fund does not hold XRP directly but gains exposure through XRP futures ETFs and spot XRP ETFs. XRPM employs a covered call strategy, writing weekly out-of-the-money call options on a portion (typically 30% to 60%) of its XRP price exposure, aiming for a 36% annual option premium income based on initial market conditions. The remainder of the portfolio retains unlimited upside potential. By using weekly options, the fund can adjust strike prices four times as often as monthly options, allowing for quicker adaptation to market volatility. This launch follows the introduction of the first US spot XRP ETF, reflecting growing investor interest in yield products linked to major cryptocurrencies like XRP and Solana, for which Amplify also plans a similar ETF.

(Source：Crypto Briefing)