Amplify Investments has filed with the SEC to create an ETF based on XRP, aimed at generating income using options. This comes amid increasing interest in funds with altcoins.
Goals of Amplify XRP Monthly Option Income ETF
The Amplify XRP Monthly Option Income ETF aims to achieve a balance between high income and capital appreciation by investing in the price return of XRP and using a covered call options strategy. This allows for regular income and benefits from the cryptocurrency's price growth.
Current State of Cryptocurrency ETFs
The Amplify application comes at a time of rising interest in altcoin ETFs. The SEC has yet to decide on several such proposals, although companies like Grayscale and 21Shares have already filed for funds tracking various cryptocurrencies. Currently, the SEC is reviewing more than 90 crypto-focused applications.
Previous Initiatives by Amplify Investments
Amplify Investments already has experience in launching cryptocurrency-related funds. The company previously introduced a fund that invests in stocks of companies involved in blockchain development and another fund aimed at generating income through a covered call strategy tied to Bitcoin price movements.
The launch of the new Amplify ETF highlights the ongoing interest in crypto funds and innovative investment strategies amid regulatory changes by the SEC. The future of this initiative will depend on decisions by regulatory authorities.
