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

PANews November 18 news, according to The Block report, Amplify ETFs, which manages assets exceeding $16 billion, has launched the Amplify XRP 3% Monthly Premium Income ETF (XRPM), which the company refers to as 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 rise exposure. The goal of XRPM is to achieve an annual options fee of 36%, while striving for a monthly return of 3%, and still capturing some of the weekly rise in XRP. It attempts to achieve this by selling weekly out-of-the-money subscription options against an exposure of 30% to 60% of XRP tokens in the portfolio, while keeping the remaining 40% to 70% of exposure unhedged to gain “unlimited” upside 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 returns monthly.