Asset manager Amplify Investments, which manages assets worth $12.6 billion, has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an XRP-based Exchange-Traded Fund (ETF). This move is a major highlight, as it shows increasing institutional interest in cryptocurrencies other than Bitcoin and Ethereum.

The documents submitted to the SEC detail the plan to launch an "XRP Option Income ETF." Unlike a spot ETF that directly holds the cryptocurrency, this fund will invest in instruments related to the XRP price, such as shares of other XRP ETFs and options to generate income.

Amplify's filing adds to the long list of XRP ETF applications awaiting SEC approval. According to a report from Bitget News, "This filing signals a growing institutional interest in regulated altcoin exposure, with 16 pending XRP ETF applications, reflecting a demand for yield-focused crypto investments." This filing could potentially open the door for more institutional investors to participate in the XRP ecosystem without having to manage the digital asset directly.

Market sentiment has become increasingly positive following this step. Market analysts, as quoted by Pintu News, state that many have underestimated investor interest in XRP ETFs. A filing from a leading asset manager like Amplify could change market dynamics and validate XRP as a serious investment asset. Projections show that the approval of this ETF could drive significant capital inflows into the crypto market.