Earn While XRP Moves: Amplify’s XRPM Option Income ETF Hits the Market
XRP Price Recovery Highlights Growing Demand for XRP Option Income ETF
The cryptocurrency world has been buzzing around XRP in recent weeks, and the excitement only intensified with the launch of the XRP Option Income ETF by Amplify. Investors and analysts alike are examining whether this innovative fund can provide a steady income stream while capitalizing on XRP’s notorious volatility.
As the broader crypto market navigates periods of uncertainty and volatility, many investors are seeking safer, more predictable ways to earn from digital assets. Amplify’s new ETF arrives precisely at this moment, offering exposure to XRP while employing strategies designed to generate consistent monthly returns.
Amplify Introduces the First U.S. XRP Option Income ETF
Amplify officially launched the XRP Option Income ETF, trading under the ticker XRPM, on the CBOE BZX exchange on November 18, 2025. The fund represents the first U.S.-listed ETF to focus exclusively on generating income through options written on XRP, marking a notable development in the integration of cryptocurrency with traditional investment vehicles.
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| Source: X post |
The ETF began trading with approximately $750,000 in initial assets and an expense ratio of 0.75%. Its core objective is straightforward: provide investors with a projected 3% monthly payout, equivalent to roughly 36% annually, through a covered call strategy, while allowing participants to still benefit from XRP price appreciation over time.
Covered call ETFs work by selling call options on the underlying asset—in this case, XRP. Investors earn premiums from the sale of these options, generating consistent income, while maintaining exposure to the cryptocurrency’s potential price gains. This makes XRPM particularly attractive to investors seeking both stability and growth in their crypto portfolio.
Leveraging XRP’s Volatility for Income Generation
One of XRP’s defining characteristics is its high price volatility. Historically, the cryptocurrency has experienced swings over five times greater than the S&P 500, creating an environment where covered call strategies can thrive. Higher volatility allows the fund to collect larger option premiums, translating into greater potential yields for shareholders.
The fund’s strategy aligns with the practical utility of XRP as a fast, low-cost blockchain solution, designed for global payments. This real-world application strengthens investor confidence and contributes to long-term demand, as both retail and institutional users continue to adopt XRP for transactional and investment purposes.
ETF Inflows Signal Rising Institutional and Retail Interest
The timing of XRPM’s launch coincides with growing institutional activity in XRP ETFs. Recent launches, such as Canary Capital’s XRP ETF, garnered $245 million in net inflows on the first day, signaling robust investor interest. Similarly, Franklin Templeton’s XRP ETF has provided additional momentum to the altcoin, while market watchers anticipate further approvals from Bitwise and other issuers.
These inflows are particularly significant because XRP currently trades about 26% below its 2025 highs, a price level that often attracts institutional accumulation. Many investors view these dips as opportunities to establish positions in assets perceived to have strong long-term potential. XRPM’s structure allows them to do so while generating income, adding an extra layer of appeal.
On-Chain Indicators Suggest Potential Undervaluation
On-chain metrics support a growing narrative of XRP’s attractiveness for long-term holders. The MVRV ratio (market value to realized value) for XRP recently dipped to -10.2%, a level historically associated with strong buying zones. Simultaneously, exchange reserves of XRP have declined sharply, indicating that holders are moving coins off exchanges to retain them long-term, rather than trade them actively.
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| Source: CMC |
Price action further reinforces this sentiment. XRP has maintained support around $2.10, even during periods of market weakness, suggesting that sellers are moderating while buyers step in to defend key levels. These trends indicate a strengthening foundation for XRP’s market, which, in turn, enhances the potential stability and performance of XRPM.
How XRPM Meets Investor Demand for Steady Income
Investors increasingly demand products that combine growth potential with reliable income streams, particularly in the crypto space, where volatility can be extreme. XRPM addresses this need by offering a monthly payout derived from covered call options while keeping investors exposed to XRP’s upside.
By integrating options-based income with direct crypto exposure, XRPM stands out from typical crypto funds, which may focus solely on price gains or staking rewards. This dual approach provides both risk mitigation and income generation, making it a compelling addition to diversified portfolios.
Strategic Importance of XRPM in the Growing Crypto ETF Market
The emergence of XRPM highlights the broader trend of institutionalizing cryptocurrency investment. ETFs that combine derivatives strategies with underlying digital assets offer investors a familiar framework to engage with crypto while benefiting from professional management and regulatory oversight.
By tapping into XRP’s volatility, XRPM provides a template for future crypto ETFs that aim to blend income generation with growth potential. If successful, this could pave the way for additional option-based funds covering other high-liquidity digital assets, further integrating crypto into mainstream investment strategies.
Future Outlook and Considerations
While XRPM shows promise, potential investors should consider market risks. XRP remains a volatile asset, and options strategies carry inherent complexities. Gains from premiums can be limited if XRP experiences significant upward price movements that exceed the strike prices of the options sold. Conversely, sharp declines in XRP value could reduce capital appreciation potential, though the income from premiums may partially offset losses.
Nevertheless, with growing institutional interest, strong on-chain indicators, and the fund’s innovative design, XRPM represents a significant step forward in bridging traditional finance and digital assets. Its monthly payout model, combined with potential price gains, may appeal to investors seeking balanced exposure in the crypto market.
Conclusion
The launch of Amplify’s XRP Option Income ETF marks a milestone in the maturation of crypto investment products in the United States. By leveraging XRP’s volatility through a covered call strategy, XRPM aims to deliver predictable income while maintaining upside potential. Combined with strong inflows, favorable on-chain indicators, and a supportive regulatory environment, the fund has captured the attention of investors seeking income without sacrificing exposure to one of the market’s most notable digital assets.
As the cryptocurrency market evolves, ETFs like XRPM may set a blueprint for future products, blending innovation, security, and accessibility for both retail and institutional participants. For now, XRP enthusiasts and income-focused investors have a new avenue to explore as the altcoin continues its journey toward broader adoption.
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