- XRP-based ETF offers 36% annual income and growth potential.
- Weekly options strategy boosts premium collection for compounded income.
- Amplify’s XRP ETF provides exposure to leading cryptocurrency’s growth.
Amplify ETFs has officially launched its XRP-based exchange-traded fund (ETF), the Amplify XRP 3% Monthly Premium Income ETF (XRPM). This new offering provides investors with an innovative way to gain exposure to the growth of XRP while also earning a steady income through an advanced options strategy.
XRPM aims to generate 36% annual option income, making it an attractive investment for those seeking both income and exposure to the cryptocurrency market.
A Strategic Approach to Income and Growth
XRPM blends income generation with capital appreciation by using covered calls and weekly options. The ETF writes weekly out-of-the-money call options on a portion of its XRP holdings, targeting 3% monthly income, along with potential gains from partial weekly capital appreciation.
This structure leverages frequent premium collection opportunities, providing the potential for compounded income and higher total returns compared to traditional monthly options.
Also Read: Pundit Says Newly Launched Amplify XRP-Based ETF (XRPM) Not Bullish at All for XRP, Here’s Why
XRP, one of the most established cryptocurrencies, serves as the primary asset in XRPM’s portfolio. As the fourth-largest cryptocurrency by market capitalization, XRP is known for its efficiency in global payments, offering fast, scalable, and low-cost transactions.
The ETF provides exposure to XRP’s growth, benefiting from its increasing adoption among financial institutions and its role as a bridge asset for digital payments.
How the Weekly Option Strategy Sets XRPM Apart
XRPM’s strategy involves writing short-dated weekly options, providing four times more frequent opportunities to reset strike prices and collect premiums compared to monthly options. This high-frequency premium collection can lead to compounded returns over time.
Moreover, XRPM allows for unlimited upside potential on the portion of its portfolio not covered by options, offering investors the opportunity to benefit from XRP’s price appreciation.
The ETF keeps a long-only portion of its portfolio to ensure exposure to XRP’s growth. With a target income of 36% annually, XRPM is designed for investors who want a high yield alongside potential capital appreciation from a leading digital asset.
By actively managing the ETF, Amplify ETFs ensures that XRPM adapts to changing market conditions. This approach offers a dynamic and responsive investment strategy, making XRPM a compelling choice for investors seeking both consistent income and exposure to one of the most widely adopted cryptocurrencies.
Also Read: Unknown 57,182,067 XRP Transfer Ahead of Franklin Templeton XRP ETF Launch – What’s Going On?
