In a significant move for the cryptocurrency space, Amplify, an investment management firm with assets totaling $12.6 billion, has filed documentation for an innovative XRP Option Income ETF. This fund, intended for launch on the Cboe BZX Exchange, is set to commence trading in November.
Instead of purchasing XRP directly, the ETF aims to offer investors exposure through various strategies, such as holding ETFs linked to XRP and employing options to enhance yield.
What Amplify’s ETF Offers
The recent SEC filing outlines a strategic portfolio allocation: at least 80% of the fund will focus on XRP-related instruments, including XRP ETFs and options derived from these ETFs.
The remaining 20% will be dedicated to stable investments such as US Treasuries and cash equivalents. The strategy involves using options for synthetic exposure, which could include tactics like combining bought calls with sold puts that have matching strikes and maturity dates.
This structure is tailored to generate a consistent income stream from option premiums derived from selling options on XRP-linked ETFs.
Futures Reflect Strong Interest
Market analysts often turn to the futures market as a gauge of investor sentiment. Historical data shows that CME XRP futures and futures-related ETFs have garnered interest, suggesting robust demand in the marketplace.
Nate Geraci, the president of The ETF Store, predicts that approval of such products could result in substantial interest in XRP-related offerings, akin to the influx seen with Bitcoin futures ETFs.
The sheer volume of crypto ETF applications is remarkable! @JSeyff is diligently tracking these trends.
It’s clear the “crypto ETF floodgates are about to open.” pic.twitter.com/9tpcrtnQjm
— Nate Geraci (@NateGeraci) August 28, 2025
The enthusiasm surrounding the launch of Bitcoin futures ETFs resulted in significant capital inflows. Analysts predict that similar investment dynamics might unfold for other cryptocurrencies as the accessibility to spot ETFs expands.
Understanding Indirect Exposure
Investors opting for this ETF would achieve indirect exposure to XRP’s price fluctuations instead of holding the token itself. They would engage with ETF shares and derivative strategies, mitigating the complexities and risks associated with direct token ownership.
This ETF’s structure may appeal to those looking to capitalize on option premium while avoiding the operational issues of managing XRP directly.
Here’s my updated list of active filings and applications for Crypto ETPs in the US, now totaling 92 entries. It’s quite a comprehensive overview! pic.twitter.com/lDhRGEQBoW
— James Seyffart (@JSeyff) August 28, 2025
Regulatory Landscape and Market Implications
Amplify’s recent application increases the total number of XRP ETF applications in the United States to 16, alongside several other notable proposals from companies like Grayscale and 21Shares.
According to Bloomberg analyst James Seyffart, there are about 96 total crypto-related ETF proposals pending before the SEC. Market watchers are anticipating a critical ruling deadline in October, with expectations of possible agency decisions on multiple ETF applications around that time.
Image sourced from Pexels, chart data via TradingView
