- Amplify’s XRP ETF could reshape crypto investments with regular income.
- ProShares’ Ultra XRP ETF offers leveraged exposure to digital assets.
- SEC’s evolving stance could drive more crypto ETFs into approval.
Amplify Investments has filed with the U.S. Securities and Exchange Commission (SEC) to launch the Amplify XRP Monthly Option Income ETF. This ETF will have the goal of providing exposure to the price movement of XRP and also paying a monthly dividend on this investment using a covered call approach. This plan involves owning XRP and selling matching call options on the latter, which will allow for generating a consistent income on top of a possible increase in value.
The filing underscores an increasing trend in the crypto ETF market, as the SEC has a queue of such applications. Amplify is not isolated, and other firms such as Grayscale and Bitwise are awaiting licenses to list ETFs based on altcoins such as Dogecoin, Solana, and Litecoin. The SEC ruling on these products would help to open up the institutional adoption of digital assets in a broader way, particularly as the SEC changes its approach to crypto ETFs.
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The SEC’s Response to Growing Crypto ETF Demands
The SEC has recently shifted its position on crypto-related ETFs, approving new rules that allow for in-kind creations and redemptions. As of the end of August, more than 90 applications of crypto-related ETFs were subject to review. If the XRP ETF by Amplify is approved, it would be a massive addition to the firm’s already existing portfolio, which already has a Bitcoin ETF that operates under a similar covered call strategy.
Amplify’s $12.6 billion in assets shows its expertise in managing large-scale investment products, positioning it as a key player in the expanding crypto ETF market.
The successful launch of Amplify XRP ETF can be considered a breakthrough. It provides investors with an opportunity to earn a regular income and invest in the cryptocurrency market, which may be of interest to investors in search of steady income from digital assets.
ProShares Ultra XRP ETF: A New Wave of Cryptocurrency Investment
Meanwhile, the approval of two new ETFs by NYSE Arca — the ProShares Ultra XRP ETF and Ultra Solana ETF — signals further growth in the integration of digital assets into traditional finance.
These leveraged offerings enable increased exposure to XRP and Solana, which highlight institutional crypto investments. Such advancements have the potential to alter how investors interact with digital currencies and cement crypto’s role in mainstream markets.
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