Roundhill Trust Updates XRP ETF Filing Amid 30-Day Spot Fund Inflows

Roundhill Trust Revises XRP ETF Filing

Roundhill Trust has submitted an updated filing to the U.S. Securities and Exchange Commission (SEC) for its covered XRP ETF. This amendment coincides with a significant streak of 30 days of net inflows into U.S. spot funds related to XRP.

Strategic Expansion of XRP ETF Options

In its Form 485BXT amendment, Roundhill Trust outlines adjustments to the registration details of its XRP Covered Call Strategy ETF. This fund does not directly hold spot XRP, instead, it generates income through the sale of call options on existing XRP ETFs, offering an alternative investment method for those who prefer not to hold the underlying asset.

A covered call ETF strategy involves earning income by selling call options on a portfolio. Roundhill's ETF intends to allocate at least 80% of its net assets to options related to XRP ETFs. In September, Grayscale introduced a similar strategy with its Ethereum Covered Call ETF to capitalize on ETH market volatility.

Spot XRP Funds Achieve 30-Day Inflow Streak

U.S. XRP exchange-traded funds have sustained a 30-day streak of net inflows, despite broader market challenges. According to SoSoValue data, as of December 30, the net inflows reached $15.55 million, bringing cumulative inflows to approximately $1.16 billion since inception, with total assets under management nearing $1.27 billion.

While daily inflows have decreased from December peaks, the momentum persists, with XRP-based funds attracting around $493.5 million during the month. This trend aligns with earlier predictions, such as those from Dom Kwok, co-founder of EasyA, who anticipated significant capital inflows following the approval of an XRP ETF. Meanwhile, spot Bitcoin ETFs broke a seven-day outflow trend, reporting a net inflow of $355 million, and Ethereum ETFs recorded a net inflow of $67.84 million.