XRP News Today: XRPM ETF Harvests 3% Yield from XRP's Volatility

The Amplify XRP 3% Monthly Premium Income ETF (XRPM) began trading on November 18, 2025, marking a significant expansion in the U.S. crypto-derivatives landscape and signaling growing institutional confidence in XRP's utility as a yield-generating asset. The fund, managed by Amplify ETFs, employs a covered call strategy to target 36% annualized option premiums-equivalent to 3% monthly income-while retaining partial exposure to XRP's price appreciation. This approach differentiates XRPM from direct XRP holdings, as it relies on derivatives tied to XRP's price movements rather than physical ownership of the asset.

XRPM's strategy involves writing weekly out-of-the-money call options on 30% to 60% of its portfolio's XRP exposure, enabling four times more premium-collection opportunities compared to traditional monthly options.

This high-frequency approach aims to harness XRP's volatility, a characteristic that has historically driven demand for structured products. The fund's long-only portion-comprising 40% to 70% of assets-remains unhedged, preserving upside potential should XRP's price surge. Amplify ETFs CEO Christian Magoon emphasized that the product "combines high option premium income with meaningful weekly upside tied to one of the world's most established digital assets," positioning XRPM as a regulated bridge between institutional finance and crypto markets.

XRP's role as the fourth-largest cryptocurrency by market capitalization $136.3 billion as of November 15 and its adoption in cross-border payments further justify the fund's focus. The XRP Ledger's speed and low-cost transaction model have attracted financial institutions and remittance providers, reinforcing its status as a "bridge currency" in global finance. The ETF's launch follows the debut of the first standard spot XRP ETF, XRPC, which generated $58 million in day-one trading volume. Together, these products reflect a broader trend of capitalizing on XRP's infrastructure-driven use cases while mitigating regulatory and volatility risks through structured strategies.

Market reactions to XRPM's launch were cautiously optimistic. While XRP traded at $2.27 on November 15-a 1.4% intraday decline-its weekly gains of 3.5% underscored underlying demand. Analysts noted that sustained inflows into XRP-linked ETFs could elevate the asset's inclusion in major indices, particularly if trading momentum persists. However, challenges remain, including regulatory scrutiny of crypto derivatives and the inherent risks of covered call strategies, which may limit upside gains during sharp price rallies.

The ETF's structure also highlights evolving investor preferences for income-focused crypto products. With an expense ratio of 0.75% and monthly distributions, XRPM competes with other YieldSmart suite offerings, such as Amplify's Ethereum-based ETTY ETF. Meanwhile, rival firms like Bitwise, 21Shares, and Grayscale have proposed similar XRP ETFs, indicating a nascent but competitive market for crypto-linked income strategies.

As XRPM begins trading, its success will hinge on its ability to balance income generation with capital preservation in a volatile market. For now, the fund's launch underscores the maturation of crypto derivatives and the growing appetite for regulated, structured products that align with both digital asset innovation and traditional investment frameworks.