Amplify launches XRP covered call options ETF, targeting a monthly yield of 3%

ChainCatcher news, according to The Block, Amplify ETFs, which manages assets exceeding $16 billion, has launched the Amplify XRP 3% Monthly Premium Income ETF (XRPM), which the company calls the first options income ETF based on XRP.

This fund is the latest member of the Amplify YieldSmart product line, which is based on covered call options and aims to combine income generation with partial growth exposure. XRPM targets an annualized option premium of 36% and seeks to achieve a 3% monthly yield, while still capturing part of Ripple’s weekly upside gains.

It attempts to achieve this by selling weekly out-of-the-money call options on 30% to 60% of the XRP token exposure in the portfolio, while keeping the remaining 40% to 70% unhedged to capture “unlimited” upside potential. Notably, the fund does not directly invest in XRP tokens. This actively managed fund has a management fee rate of 0.75% and distributes income monthly.