Amplify ($12.6B AUM) files for XRP Option Income ETF with SEC, targeting monthly income via options, set for November on Cboe BZX.
The latest firm to petition for an XRP ETF is Amplify, an asset manager with $12.6 billion in assets under management (AUM). This move will provide institutional investors with exposure to the altcoin. Nevertheless, the XRP Option Income ETF is distinct from the pending spot applications, which are currently awaiting approval from the SEC.
Amplify Introduces the XRP Option Income ETF
The asset manager has submitted this XRP fund as a series of its ETF Trust, as evidenced by an SEC filing. It intends to list and trade shares of this fund on the Cboe BZX Exchange. In the interim, the organization wants to transfer the funds in November.
The XRP Option Income ETF, as stated in the filing, aims to generate a high annualized option premium and benefit from the return in the XRP price by selling options on XRP ETFs that reference the altcoin’s price.
Accordingly, the fund will allocate at least 80% of its net assets to financial instruments that offer exposure to the XRP price. Shares of XRP ETFs will comprise a portion of the fund’s long-term exposure. Simultaneously, the fund will maintain ETF options.
The XRP Option Income ETF will employ these options on XRP ETFs to provide synthetic exposure to the XRP ETFs. Amplify also observed that this fund may purchase call options and sell put options in the same quantity and strike price with the same expiration, or it may purchase an in-the-money call option.
Meanwhile, the asset manager will allocate 20% of the fund’s net assets to cash, cash-like investments, or U.S. Treasuries. As noted by Amplify, the fund will not actively invest in XRP, which sets it apart from the pending spot applications that aim to provide spot exposure to the altcoin.
Sixteen applications are currently pending in the United States
The XRP Option Income ETF registration by Amplify has resulted in the submission of 16 applications for XRP ETFs in the United States. Seven are spot ETF applications from Grayscale, 21Shares, Canary, Bitwise, Wisdomtree, CoinShares, and Franklin Templeton.
This follows the disclosure by Bloomberg analyst James Seyffart that the SEC has received at least 96 crypto-related ETF filings. At present, XRP and Solana dominate the number of filings.
A market expert, Nate Geraci, has declared that the crypto floodgates are about to open shortly. He suggests that the SEC approve these funds by the October deadline. In light of the CME XRP futures and futures-based ETFs’ success thus far, he anticipates these XRP ETFs will experience significant demand.
