A striking move on the American stock exchanges puts XRP back in the spotlight. The Chicago Board Options Exchange (Cboe) has given the green light for a brand new investment fund based on the cryptocurrency. What is special is that it is a fund that promises investors monthly income.
Cboe confirms approval of Amplify XRP ETF
The Cboe has officially confirmed the approval and listing of a new XRP fund. This is the Amplify XRP 3% Monthly Premium Income ETF. In a letter to the U.S. Securities and Exchange Commission (SEC), Cboe announced that the exchange-traded fund (ETF) has been approved for listing under the Exchange Act of 1934.
This new ETF from Amplify is an investment fund aimed at generating income from XRP, without investors having to directly purchase or hold the digital currency itself. Instead of simply tracking the price of XRP, this fund uses an options strategy to pay out a fixed premium of 3 percent every month.
Cboe is one of the largest exchange platforms in the world and focuses on trading options, stocks, ETFs and other financial products. With this step, XRP once again becomes a regulated investment product on the American market.
XRP ETFs Flood Market
It all started in September with the launch of the XRP fund from Rex Shares and Osprey Funds, known by the ticker XRPR. Thanks to a legal loophole, this ETF managed to appear on the market remarkably quickly. However, this is a mixed fund that contains both spot exposure and positions in futures.
However, last week we saw the first XRP ETF that investors had been waiting for for months. Canary Capital launched its fund on November 13 with full spot exposure, similar to the popular Bitcoin (BTC) and Ethereum (ETH) ETFs. The start was a great success. The ETF grew to be the most successful crypto ETF launch of the year, with $58 million in daily volume and $245 million inflows on the first day.
But it doesn’t stop there. XRP is on the cusp of a historic week with four major asset managers launching their own spot ETFs. After the success of Canary Capital’s XRPC ETF, funds from Franklin Templeton, Bitwise and 21Shares, among others, are also expected. This could lead to an inflow of new capital, broader acceptance and possibly a significant price increase.
Source: https://newsbit.nl/nieuwe-xrp-etf-bevestigd-inkomensfonds-zet-token-opnieuw-in-spotlights/
