XRP’s Bull Moment? Amplify ETF Filing Could Open the Floodgates for Institutions

CN
23 hours ago

XRP’s potential path into mainstream finance has gained momentum with a new exchange-traded fund (ETF) application from Amplify, a U.S. asset manager with over $13.6 billion in assets across its suite of ETFs. The proposed Amplify XRP Monthly Option Income ETF is designed to generate monthly yield while offering exposure to XRP’s price, a combination that has drawn attention from market observers. Lawyer Bill Morgan explained on social media platform X that the filing is particularly meaningful given Amplify’s size and reputation in traditional finance.

“All the XRP ETFs are significant in terms of institutional adoption,” Morgan wrote while outlining why the Amplify XRP fund stands apart from earlier efforts. He opined:

What is interesting to me about this one is that the fund will use covered calls to earn monthly income which will be attractive to investors who wish to earn yield as well as have exposure to XRP price moves.

“Yield plus XRP price exposure. The fact that such a product is being offered by an investment management firm with AUM of such a value is significant,” he emphasized.

By combining income potential with crypto exposure, the product is structured to appeal to a broader class of investors beyond those focused solely on price appreciation.

The ETF will gain exposure to XRP partly by holding shares of XRP exchange-traded products (ETPs) and partly through derivatives tied to those products. It will also invest indirectly in XRP through a Cayman Islands subsidiary. The structure is designed to reduce operational challenges while maintaining a close link to XRP’s performance. If the U.S. Securities and Exchange Commission (SEC) approves the product, some analysts view it as a step toward wider institutional adoption and evidence of crypto’s growing role in financial markets through new investment vehicles.

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