SEC Receives Filing For XRP Option ETF From $12-B Amplify

Based on an SEC filing, Amplify — an asset manager overseeing $12.6 billion — has submitted paperwork for an XRP Option Income ETF that it plans to list on the Cboe BZX Exchange and start trading in November.

Rather than buying XRP outright, the fund seeks market exposure by holding ETFs that track XRP and by writing options to generate yield.

Amplify Seeks An Options-Based XRP Play

The filing outlines the fund’s composition. A minimum of 80% of the portfolio will be invested in instruments tied to XRP’s price, including shares of XRP ETFs and options written on those ETF shares.

The other 20% will be allocated to US Treasuries, cash, or similar short-term instruments. The fund intends to use option contracts to build synthetic exposure — for instance, pairing bought calls with sold puts at identical strikes and expirations, or buying in-the-money calls.

That arrangement is designed to produce steady option premium income from selling options on ETFs referencing XRP.

Futures Action Suggests Demand

Analysts look to futures markets for indications of investor demand. CME XRP futures and futures-linked ETFs have had momentum in the past, indicating there is demand.

Nate Geraci, president and chairman of The ETF Store, has been projecting approvals could unleash high levels of interest in XRP products, likening the inflows to what occurred with Bitcoin futures-linked ETFs.

Big capital flows followed the introduction of Bitcoin futures ETFs, and a few market observers anticipate similar flows for other tokens if access to spot ETFs widens.

Indirect Exposure, Different Risks

Because the fund won’t hold the token directly, investors would gain indirect exposure to price swings in XRP through ETF shares and derivative strategies rather than direct token custody.

That contrasts with the spot ETF bids currently pending with the SEC. Amplify’s structure may attract investors chasing option premium while avoiding the operational and custody issues tied to holding XRP directly.

Regulatory Backdrop And A Crowded Queue

Reports show Amplify’s filing raises the tally of XRP ETF applications in the US to 16. Among those are seven spot ETF bids from Grayscale, 21Shares, Canary, Bitwise, Wisdomtree, CoinShares, and Franklin Templeton.

There are at least 96 crypto-related ETF filings with the SEC overall, according to Bloomberg analyst James Seyffart.

Market participants are watching an October deadline closely, with some expecting the agency to rule on multiple proposals around that time.

Featured image from Pexels, chart from TradingView