Amplify Investments asks the SEC ETF of monthly income based on XRP

Unlike the eTFs already known, Amplify proposes a strategy focused on returns based on the price of XRP, In addition to an income system through a strategy of selling covered options.

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• Amplify presented a prospect for an ETF that combines XRP With covered options strategy.
• The Sec maintains more than 90 applications pending crypto funds, including Altcoins such as Litecoin, Dogecoin and Solana.
• The firm administers USD $ 12.6 billion in assets and already has experience with funds linked to Blockchain and Bitcoin.

Amplity Investments, A recognized manager of traded funds (ETF), presented on Friday before the United States Stock Exchange and Securities Commission (SEC) an application to launch a new product linked to XRP, The native currency of the network Ripple It is a monthly income fund (ETF) with options strategy that seeks to attract both investors interested in regular income and in capital appreciation.

The proposal comes at a time when the Sec Faces a great demand in reviewing funds related to cryptocurrencies. The regulatory panorama is evolving and companies seek to position themselves before the regulator defines clearer criteria.

An ETF that combines XRP and covered options

According to the request submitted, the fund would be called Amplify XRP Monthly option income ETF. Its objective is to offer a double profitability: Exposure to price return XRP and income generation through a Covered Calls strategy (sale of covered purchase options).

This type of strategy consists in maintaining a long position in the underlying asset, in this case XRP, and simultaneously sell purchase options on the same asset. In this way, it seeks to generate recurring income from the premiums of the options, although sacrificing part of the profit potential if the token price rises accelerated.

Amplify He explained that the background design is oriented to “Balance high income with capital appreciation”, offering a novel alternative to investors who want exposure to cryptocurrencies with a monthly flow generation approach.

Regulatory context and delay in approval

The application is submitted in a particular context. After the arrival of Donald Trump to the presidency at the beginning of the year, the position of the Sec Towards Cryptocurrencies has experienced notable changes. In July, the agency voted in favor of allowing authorized participants to make creations and redemptions in kind for crypto funds, an adjustment that opened the way for greater flexibility in this market.

Even so, the agency has more than 90 applications on hold. According to estimates Bloomberg As of August 28, pending proposals include funds that seek to give direct exposure to tokens such as Litecoin, Dogecoin, Solana and to the own XRPin addition to other products related to the crypto ecosystem. Among the requesting companies are signatures such as Grayscale, 21Shares and Bitwiseall with wide presence in the sector.

The advance of ETFs Bitcoin and Ethereum In spot format during the last year it has marked a precedent. These products attracted billions of dollars in capital, which reinforced industry’s interest in replicating the model with other high capitalization cryptocurrencies.

The previous experience of Amplify with the ETF crypt

Amplify is not new in the field of funds linked to the digital ecosystem. The firm has already launched an ETF that invests in values ​​of companies involved in the development and application of technologies Blockchain. It also has another fund that uses a similar Covered Calls strategy, but linked to the evolution of the price of Bitcoin.

In total, the manager manages USD $ 12.6 billion in assets distributed in its different ETFs, according to information available on its website. Its incursion into a product specifically focused on XRP Mark another step towards diversification in the investment offer linked to cryptoactive.

The fact that Amplify Opt for a product -based product suggests a prudent approach, since the options can generate recurrent income without depending exclusively on the sustained rise on cryptocurrency. However, it also raises limitations, as it restricts the ability to capture the full appreciation potential of XRP In case of a rally.

The potential impact on the market

The approval of this fund would represent a milestone to XRP and for the Altcoins market in general. It would be one of the first products in the United States that combines a different asset Bitcoin either Ethereum with a revenue generation strategy through derivatives.

For traditional investors, an ETF of these characteristics could provide a more regulated and accessible route to gain exposure to XRP, no need to directly guard the digital asset. At the same time, it would offer a more moderate risk profile than simple tokens possession, thanks to the monthly income component.

The initiative could also influence institutional perception on XRP, that has faced various regulatory challenges in recent years. A product approved by the Sec It could send a sign of legitimacy that attracts more capital and foster greater liquidity.

The movement of Amplity Investments It is inserted into a dynamic scenario for the Cripo ETF in the United States. While the products of Bitcoin and Ethereum They already consolidated their place in the market, the next step seems to focus on Altcoins with solid communities and high negotiation volume.

The decision of the Sec On this prospect, it will be closely followed by the fund industry, but also throughout the crypto community, which seeks regulatory clarity and new investment opportunities.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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