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

According to Mars Finance, The Block reported that Amplify ETFs, which manages assets exceeding $16 billion, has launched the Amplify XRP 3% Monthly Premium Income ETF (XRPM), which the company claims is 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 aimed at combining revenue generation with partial growth exposure. XRPM aims for an annualized option premium of 36%, while striving for a 3% monthly return, all the while capturing some of the weekly pump of Ripple. It attempts to achieve this by selling weekly out-of-the-money subscription options targeting a 30% to 60% exposure in XRP tokens, while keeping the remaining 40% to 70% exposure unhedged to gain “unlimited” rise potential. It is worth noting that 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.