XRP News Today: Regulators Eye New XRP ETF Model as Approval Odds Soar

The U.S. Securities and Exchange Commission (SEC) has yet to make a definitive decision on a spot XRP exchange-traded fund (ETF), despite a shift in regulatory leadership and a more moderate approach to cryptocurrency regulation in 2025. While numerous ETF applications remain pending, a recent filing by Amplify ETFs has drawn attention for its innovative structure, which differs from traditional spot ETFs. Amplify, an Illinois-based firm with $12.6 billion in assets under management as of July 31, 2025, has applied for an XRP Options Income ETF that utilizes options strategies to generate predictable monthly income for investors. Unlike a standard spot ETF, which holds the underlying asset directly, this strategy involves selling covered calls on XRP holdings to collect premiums and distribute them as regular income to shareholders [1].

The ETF's approach involves holding XRP and selling monthly call options, effectively generating yield without relying on substantial price appreciation in the underlying asset. The options expire at the end of each month, allowing the ETF to reset its strategy regularly and provide consistent returns to investors. This model is particularly attractive in the current market environment, where volatility and regulatory uncertainty have made long-term price speculation less predictable. Analysts and market participants suggest that this structure may make the ETF more palatable to regulators who have historically been cautious about approving spot crypto ETFs [1].

The regulatory landscape for XRP ETFs has evolved in recent months, with the SEC adopting a more measured stance. The departure of former SEC Chair Gary Gensler marked a shift in tone, and the resolution of the SEC v. Ripple case in favor of Ripple has further signaled a potential softening of the agency's approach. Despite these developments, the SEC has yet to approve any spot XRP ETF, even as futures-based products have entered the market. Some industry observers believe the Options Income ETF filing may have a higher probability of approval due to its structural differences from traditional spot ETFs [1].

Prediction markets reflect growing optimism that an XRP ETF will be approved in 2025. According to data from Polymarket, the likelihood of a spot XRP ETF launching in the U.S. during the year is currently at nearly 90%, indicating strong market confidence in regulatory progress. While the Amplify ETF represents a different product type, its approval could serve as a stepping stone toward broader acceptance of XRP-based investment vehicles. This, in turn, could open the door for more institutional participation in the XRP market, further legitimizing the asset class [1].

Market observers are closely watching how the SEC evaluates this new product type. A successful approval could set a precedent for other options-based or income-generating crypto ETFs and potentially accelerate the broader acceptance of regulated cryptocurrency investment products. As the agency continues to reassess its approach to crypto, the outcome of the Amplify ETF filing may provide valuable insight into the direction of U.S. regulatory policy toward digital assets. In the meantime, the XRP market remains in a state of anticipation, with both retail and institutional investors awaiting clarity on the path forward [1].

Source: [1] Will This Groundbreaking XRP ETF Filing Finally Win SEC Approval? (https://cryptopotato.com/will-this-groundbreaking-xrp-etf-filing-finally-win-sec-approval/)