Amplify Breaks New Ground with SOL and XRP Option Income ETF Filings

Chicago-based asset manager Amplify ETFs has filed groundbreaking applications with the Securities and Exchange Commission for Solana (SOL) and XRP Monthly Option Income ETFs, marking a significant development in the evolving cryptocurrency ETF landscape. The filings represent an innovative approach to crypto investing, combining price exposure with income generation through covered call strategies.
Amplify ETFs announced on September 24, 2025, the filings for the Amplify Solana Monthly Option Income ETF and Amplify XRP Monthly Option Income ETF, with both funds seeking to "balance high income and capital appreciation through investment exposure to the price return of SOL [and XRP] and a covered call strategy."
Strategic Innovation in Crypto ETF Space
The proposed ETFs utilize a covered call strategy, where the fund maintains exposure to the underlying cryptocurrency while simultaneously selling call options to generate monthly income. This approach differs significantly from traditional spot ETFs, as it aims to provide investors with regular income streams from option premiums while participating in potential upside from the cryptocurrencies themselves.
"Our BITY and BAGY ETFs, which provide price exposure to Bitcoin and seek high monthly option income using covered call strategies, have seen tremendous traction and adoption since their launch in April 2025," said Christian Magoon, CEO of Amplify ETFs. This track record provides a foundation for the expansion into altcoin-based option income products.
Market Context and Regulatory Environment
The filings come during an unprecedented period for crypto ETF applications. As of August 29, the SEC had at least 92 crypto-linked ETF proposals under review, creating a substantial backlog for regulators to navigate. According to Bloomberg Intelligence ETF analyst James Seyffart, there are now more than 90 crypto ETFs pending SEC approval, led by XRP and Solana applications.
The regulatory landscape has evolved considerably since the Trump administration took office. In July, the SEC voted to approve orders to allow in-kind creations and redemptions by authorized participants for crypto ETFs, signaling a more accommodating stance toward cryptocurrency investment products.
Additionally, the SEC is considering proposals from Nasdaq, NYSE Arca, and Cboe BZX to adopt generic listing standards for crypto and commodity-based ETFs, which would allow qualifying funds to list without requiring bespoke SEC approval under Rule 19b-4. If approved, this could dramatically streamline the approval process for altcoin ETFs.
Fund Structure and Investment Approach
The proposed ETFs will operate through carefully structured investment mechanisms. The fund will invest indirectly through a Cayman Islands-based subsidiary overseen by Amplify and its appointed sub-advisers, allowing flexibility in managing crypto exposure while adhering to U.S. regulatory standards.
Key structural elements include:
- Minimum 80% allocation to instruments providing XRP or SOL price exposure
- Monthly distribution schedule with income generated from option premiums
- FLEX Options utilization for most call positions due to their customizable nature
- Daily NAV calculation using market quotes when available or fair value pricing
The fund plans to sell call options slightly out of the money, typically 5–10%, with one-week or shorter maturities, adjusting weekly option activity to maintain a consistent annualized premium target.
XRP/Ripple Analysis: Specific Impacts and Opportunities
XRP Price Potential
The option income ETF structure could provide measured exposure to XRP's price movements while generating steady income. Unlike direct XRP investment, the covered call strategy caps extreme upside during significant rallies but provides downside cushioning through premium income.
Ripple's Business Operations
"We see potential in XRP's efficient, low fee payment network, including cross-border payments," noted Amplify's management. An approved ETF could validate XRP's utility in institutional portfolios, potentially driving broader adoption of Ripple's payment solutions.
Legal Standing
The filing demonstrates growing institutional confidence in XRP's regulatory clarity. Amplify's filing increases the total number of XRP ETF applications in the U.S. to sixteen, with seven spot ETF applications already submitted by major firms including Bitwise, Franklin Templeton, Grayscale, and WisdomTree.
Partnership Opportunities
Institutional ETF access could accelerate XRP adoption among traditional financial institutions, potentially creating new partnership opportunities for Ripple in the regulated finance sector.
Adoption Prospects
The option income structure may appeal to income-focused institutional investors who have been hesitant to directly hold cryptocurrencies, potentially expanding XRP's investor base significantly.
Broader Market Implications
The success of Bitcoin and Ethereum ETFs has proven substantial investor demand for regulated crypto products. BlackRock's iShares Bitcoin Trust ETF now generates more in fees than its flagship S&P 500 fund, demonstrating the revenue potential of crypto ETFs.
Amplify ETFs, with over $14.1 billion in assets under management as of August 31, 2025, brings significant institutional credibility to the altcoin ETF space. The firm's established track record with crypto-related products positions it well for potential approval.
Expert predictions suggest favorable odds for approval. In June, Seyffart indicated 95% odds of approval for coins like Solana and XRP this year, portraying them as "near-locks".
Regulatory Considerations and Timeline
The SEC faces mounting pressure to address its crypto ETF backlog. The SEC is expected to finalize new generic listing rules by late September 2025, which could dramatically streamline the 19b-4 filing process and enable faster altcoin ETF rollouts.
However, challenges remain. The SEC has delayed numerous crypto ETF applications, with final deadlines for several applications extending into October and November 2024. The regulatory review process continues to emphasize investor protection, market integrity, and operational risk management.
Key Takeaways
Amplify's SOL and XRP option income ETF filings represent a significant evolution in crypto investment products, combining the growing acceptance of altcoin ETFs with innovative income-generation strategies. The covered call approach offers a differentiated value proposition for income-focused investors while maintaining crypto exposure.
With over 90 crypto ETF applications pending and potential generic listing standards on the horizon, the approval of these products could mark the beginning of a new era for institutional altcoin investment. The success of these filings may determine whether option income strategies become a standard feature in the expanding crypto ETF ecosystem.
DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with any of the mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.
Sources
- The Block - Amplify files for XRP option income ETF
- Globe Newswire - Amplify ETFs Files for Solana & XRP Option Income ETFs
- Coin Central - Amplify Eyes SEC Approval for First XRP Option Income ETF
- Cointelegraph - SEC approval of listing standards can mainstream crypto ETFs
- Decrypt - There Are Now More Than 90 Crypto ETFs Pending SEC Approval
- CCN - Crypto ETF Watchlist 2025
- Yahoo Finance - 92 Crypto ETFs Now Await SEC Approval