Asset manager Amplify, with $12.6 billion in assets under management (AUM), is the latest firm to file for an XRP ETF, providing institutional investors with exposure to the altcoin. However, the XRP Option Income ETF differs from the pending spot applications, which are currently awaiting approval from the SEC.
Amplify Unveils XRP Option Income ETF
An SEC filing has shown that the asset manager has filed this XRP fund as a series of its ETF Trust. It plans to list and trade shares of this fund on the Cboe BZX Exchange. Meanwhile, the firm plans for the fund to begin trading in November.
As noted in the filing, the XRP Option Income ETF seeks to benefit from the return in the XRP price and to generate a high level of annualized option premium by selling options on XRP ETFs that reference the altcoin’s price.
In line with this, the fund will invest at least 80% of its net assets in financial instruments that provide exposure to the XRP price. Holdings will include shares of XRP ETFs, which will form a portion of the fund’s long-term exposure. At the same time, the fund will also hold ETF options.
The XRP Option Income ETF will use these options on XRP ETFs for synthetic exposure to the XRP ETFs. Amplify also noted that this fund may use the combination of purchasing call options and selling put options in the same amount and at the same strike price with the same expiration, or may purchase an in-the-money call option.
Meanwhile, the asset manager will invest the remaining 20% of the fund’s net assets in U.S. Treasuries, cash, or cash-like investments. Amplify noted that the fund will not directly invest in XRP, which distinguishes it from the pending spot applications that seek to provide spot exposure to the altcoin.
16 Pending Applications In The U.S.
Amplify’s XRP Option Income ETF filing means there are now 16 applications for XRP ETFs in the U.S. Seven of them are spot ETF applications from Grayscale, 21Shares, Canary, Bitwise, Wisdomtree, CoinShares, and Franklin Templeton.
This follows Bloomberg analyst James Seyffart’s revelation that there are currently at least 96 crypto-related ETF filings with the SEC. XRP and Solana currently lead the pack in the number of filings.
Market expert Nate Geraci declared that the crypto floodgates are about to open soon, alluding to the fact that the SEC could approve these funds by the October deadline. He predicts these XRP ETFs will record massive demand, considering the success that the CME XRP futures and futures-based ETFs have enjoyed so far.
Boluwatife Adeyemi
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Source: https://coingape.com/12b-amplify-files-xrp-option-income-etf-with-sec/