Amplify Investments has filed with the U.S. SEC to launch the first-ever XRP Spot Income ETF. If it gets approved, this fund could let regular investors earn money from XRP without ever buying the coin directly.
So what is it, how does it work, and is it safe? Let’s break it down.
What Exactly Is This ETF?
Think of it as a shortcut. Instead of buying XRP yourself, this fund would track XRP’s price and also pay you income on top. According to the filing, 80% of the fund will be tied to XRP’s value. But here’s the twist: it won’t hold the coin directly. Instead, it will use products linked to XRP, like exchange-traded products and options.
Crypto lawyer Bill Morgan summed it up well: “As I understand the product, it does not require Amplify to acquire and custody XRP itself but provides for 80% of the portfolio to be of assets tied to XRP’s value, such as options or derivatives.”
Where the “Income” Comes In
The secret sauce is a covered call strategy. In simple terms, the fund bets on XRP’s movements and earns premiums by selling options. Those premiums are then passed on to investors as income.
So instead of just riding XRP’s roller coaster, holders of the ETF could receive a steady stream of returns, even if the token’s price is choppy. The trade-off is that upside potential gets capped if XRP surges, but the income cushion helps soften the blows during quieter periods.
When Could It Launch?
Amplify wants to list the ETF on the Cboe BZX Exchange, possibly as early as November 2025. But nothing is certain until the SEC signs off. The SEC’s full review process can last up to 240 days to make a final decision on cryptocurrency ETF applications, starting from the initial filing date.
Right now, the Commission is also reviewing applications for Solana, Dogecoin, XRP, and others from big names like Grayscale, 21Shares, and CoinShares.
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FAQs
It’s a fund that would let investors gain exposure to XRP’s price and earn income through a covered call strategy, all without directly owning the token.
The fund uses a covered call strategy, selling options on products linked to XRP. It then passes the premiums earned from these sales to investors as income.
If approved by the SEC, it could list on Cboe BZX by November 2025. The SEC’s review process may take up to 240 days from filing.
It focuses on income generation via options, not just price tracking. It also avoids direct crypto custody, using derivatives for regulatory simplicity.
