Can Solana Do What Bitcoin Can't? Amplify's New ETF Aims For 36% Income
Amplify ETFs, the issuer known for thematic and income-driven fund products, has just launched the Amplify Solana 3% Monthly Option Income ETF (BATS:SOLM), a first-of-its-kind product combining the growth momentum in Solana (CRYPTO: SOL) with steady income.
The ETF targets an ambitious 36% annual option premium income by deploying a short-term covered call strategy on Solana exposure, at an expense ratio of 0.75%.
• See how SOLM is doing here.
The fund joins Amplify’s YieldSmart suite of actively managed income ETFs, but SOLM’s crypto foundation makes it stand apart. Where Bitcoin ETFs are largely tied to price appreciation or futures roll yields, SOLM aims to generate consistent cash flow while still participating in Solana’s upside.
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From Staking to Options: Solana’s New Income Play
In fact, SOLM writes weekly out-of-the-money covered calls on 30%–60% of its Solana holdings. This enables investors to capture 5%–10% of the appreciation every week while taking in premium income that, importantly, equates to around 3% per month. The rest of the portfolio remains long-only to preserve unlimited upside if Solana continues its rally.
According to Amplify CEO Christian Magoon, the fund is designed to "outperform traditional Solana staking income" by utilizing weekly options instead of monthly ones, giving it four times more chances to reset strike prices and compound gains.
This launch comes amid a rise in institutional interest in Solana, which has gained momentum as one of the fastest and most cost-efficient blockchains. Thousands of decentralized apps now run on the ecosystem, from DeFi to tokenized real-world assets.
While Bitcoin ETFs have dominated 2024 inflows, Solana’s surging transaction volume and developer activity have vaulted it to the top of “next-gen” blockchain contender lists. Amplify’s SOLM could be the bridge that connects the crypto income crowd with mainstream ETF investors looking for yield without sacrificing growth.
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