Amplify Launches XRPM: First U.S.-Listed XRP Option-Income ETF

Amplify's XRPM is the first U.S.-listed XRP option-income ETF, offering monthly premium income while providing regulated exposure to XRP's price movements.

Amplify ETFs has launched the Amplify XRP 3% Monthly Premium Income ETF (XRPM), the first U.S.-listed XRP option-income ETF. This product marks a milestone for token-based investment vehicles by bringing an XRP-focused, options-driven strategy to regulated markets, making XRP exposure more accessible to mainstream investors through a familiar ETF wrapper.

How XRPM Works
XRPM is built as an option income strategy that seeks to generate steady premium income while maintaining exposure to XRP’s price movements. The fund’s approach typically involves holding XRP and selling options—such as covered calls—on a monthly cadence to collect premiums. These option premiums can provide periodic cash distributions, which may appeal to investors looking for income in addition to potential crypto appreciation.

Why This Matters for Investors
As a crypto ETF, XRPM offers a regulated route to gain exposure to XRP without direct custody of the token by individual investors. The ETF structure means many retail and institutional accounts can access XRP exposure through standard brokerages. For investors attracted to yield, the option-income overlay aims to smooth returns relative to outright spot exposure, while still participating in some upside when XRP rises.

Risks and Considerations
XRPM’s strategy involves trade-offs. Selling options limits upside potential when XRP rallies, and the fund remains exposed to XRP’s inherent price volatility and regulatory uncertainties surrounding digital assets. Option strategies also introduce counterparty, liquidity, and strategy-execution risks. Fees and the ETF’s precise use of options can affect net returns, so investors should review the prospectus and performance history.

Who Should Consider XRPM
XRPM may suit investors seeking regulated XRP exposure with an income-oriented overlay, such as strategic crypto allocators, income-focused investors comfortable with digital-asset risks, and those who prefer the trading convenience of ETFs. It is not a guaranteed income product and is best considered as part of a diversified portfolio.

Conclusion
Amplify’s XRPM expands the crypto ETF landscape by combining an option income strategy with XRP exposure in a U.S.-listed fund. Prospective investors should weigh potential income benefits against volatility and regulatory risk, and consult a financial advisor to determine fit within their investment goals.

Back