XRP Monthly Option Income ETF Filed With SEC to Target Yield and Upside With Calls
XRP is primed to redefine crypto investing with a first-of-its-kind ETF blending covered calls and synthetic exposure, delivering monthly income and capital appreciation potential.
WRITTEN BY
Kevin Helms
XRP Monthly Option Income ETF Filed With SEC to Target Yield and Upside With Calls
SEC Filing Shows XRP ETF Structured to Generate Yield and Upside Using Covered Calls
XRP is at the forefront of a proposed investment vehicle that blends digital asset exposure with an income-focused strategy. Amplify ETF Trust filed with the U.S. Securities and Exchange Commission (SEC) on Aug. 29, 2025, to launch the Amplify XRP Monthly Option Income exchange-traded fund (ETF). The filing describes the ETF as one that “seeks to balance high income and capital appreciation through investment exposure to the price return of XRP and a covered call strategy.” Shares are expected to list on the Cboe BZX Exchange, with Amplify Investments serving as the adviser and Kelly Strategic Management, doing business as Kelly Intelligence, included as one of the sub-advisers.
The ETF will obtain its exposure to XRP through a combination of holdings and derivatives tied to XRP exchange-traded products (ETPs). As outlined in the filing:
A portion of the Fund’s long exposure to XRP ETPs will come through the Fund owning shares of the XRP ETPs.
Beyond this, the fund will implement synthetic exposure through options, as detailed in the prospectus: “The Fund will use options on XRP ETPs (the ‘ XRP ETP Options’) that reference a XRP ETP for synthetic exposure to XRP ETPs. The Fund may use the combination of purchasing call options and selling put options generally in the same amount, at the same strike price with the same expiration or may purchase an in-the-money call option. This synthetically creates the upside and downside participation in the XRP Price, as represented by the XRP ETP.” To enhance income, the ETF intends to sell weekly out-of-the-money calls with a target option premium, distributing proceeds monthly to shareholders. The fund will also hold U.S. Treasuries and cash equivalents as collateral for its options positions.
The filing outlines risks such as XRP price volatility, potential liquidity issues, cybersecurity threats, and counterparty defaults. The ETF will also invest indirectly in XRP through a Cayman Islands subsidiary, limited to 25% of assets at quarter end to preserve its U.S. tax status as a regulated investment company.
The regulatory environment remains fluid, but the filing highlights Ripple Labs’ settlement with the SEC, which ended litigation over unregistered institutional XRP sales with a $125 million penalty while clarifying that secondary market sales of XRP are not securities. Although critics note ongoing uncertainty and volatility in crypto markets, advocates view Amplify’s proposed ETF as an opportunity to expand regulated access to digital assets, providing investors with structured income opportunities tied to XRP within the framework of traditional finance.
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