A groundbreaking exchange-traded fund (ETF) filing has been submitted to the U.S. Securities and Exchange Commission (SEC) on August 29, 2025, by Amplify ETF Trust. Named the Amplify XRP Monthly Option Income ETF, it intends to list on the Cboe BZX Exchange and is designed to generate monthly income and capital appreciation through a combination of direct XRP exposure and a covered call strategy. Amplify Investments will serve as the adviser, with Kelly Strategic Management (doing business as Kelly Intelligence) as a sub-adviser.
ETF Structure: XRP Exposure and Synthetic Participation
According to the prospectus, the fund will gain exposure to XRP via holdings of XRP exchange-traded products (ETPs) and synthetic exposure through options on those ETPs. The fund may purchase call options and sell put options in equal amounts at the same strike and expiration, or purchase in-the-money call options, to synthetically replicate the price return of XRP. This allows investors to participate in XRP’s upside and downside without directly holding the cryptocurrency.
Income Generation: Writing Weekly Covered Calls
To boost income, the ETF will sell weekly out-of-the-money call options targeting a premium, distributing the proceeds to shareholders monthly. The fund will hold U.S. Treasuries and cash equivalents as collateral for its options positions. This mechanism mirrors traditional covered call ETFs but applies it to XRP ETPs, merging crypto exposure with a time-tested income strategy.
Risk Factors and Regulatory Context
The filing outlines risks including XRP price volatility, liquidity concerns, cybersecurity threats, and counterparty default. To maintain tax status as a regulated investment company, the ETF will invest indirectly in XRP through a Cayman Islands subsidiary, limited to 25% of assets at quarter-end. On the regulatory front, the filing references Ripple Labs’ settlement with the SEC — a $125 million penalty for unregistered institutional XRP sales, with clarification that secondary market XRP transactions are not securities. While crypto regulation remains fluid, proponents view this ETF as a step toward mainstreaming digital asset exposure within traditional finance.