Amplify ETFs | Best Crypto Linked ETF Issuer ($100m-$1bn)
A popular and regular winner in our US awards, Amplify ETFs has been doing crypto-linked products since 2018 and has enjoyed rapid growth in the last few years. The firm has USD16 billion in assets under management with 33 ETFs in the US marketplace.
“About half is in growth opportunities, while the other half focuses on income strategies our crypto exposure overlaps growth and income” says Christian Magoon, CEO of Amplify ETFs.
The firm’s Amplify Blockchain Technology ETF, BLOK, was launched back in 2018. “It was the first actively managed ETF to invest in blockchain and crypto, is five-star Morningstar rated, and has returned 20 per cent per annum since launch and it is still the largest in the category of about 20 ETFs,” Magoon says.
Magoon reports significant and growing interest in crypto products and the firm has launched five crypto income ETFs, two on Bitcoin, two on Ethereum, and one on Solana, with an XRP ETF about to launch.
“These are ETFs which own the crypto exposure and write options on the digital asset to generate a certain amount of income,” Magoon explains. “Some target 2 per cent option income a month, some 3 per cent a month and there are some that seek to provide maximum income, which historically has been 30-80 per cent annually.
“We didn’t launch a spot Bitcoin ETF because the market was already saturated with those products. Instead, we focused on innovation and strove to become the first sponsor to introduce options-income based crypto ETFs. This approach reflects our DNA: combining growth with income to deliver differentiated solutions for investors.”
The last few years have also seen increased interest from advisers and institutional investors in the firm’s options-based income strategies with their five-star funds DIVO, QDVO, and IDVO proving to be the most popular, having been in the options-based space since 2016. This year also saw strong interest in the firm’s USD3 billion Junior Silver Miners ETF, SILJ.
Looking forward, the firm has the XRP Income focused ETF coming, plus the first stablecoin tech ETF, QSTB in registration.
Magoon notes the US ETF industry grew about 24 per cent this year, which is well above its historical average of 15–18 per cent, however, Amplify achieved a notable 60 per cent growth in assets.
“It’s right place, right time to meet investor demands, but we also tripled our sales force to achieve greater market penetration,” he says.
“We are approximately the 33rd-largest issuer in the US, and that position has helped us climb the ranks to have more products available on more platforms. Having more brokerage firms able to access our products also contributes to increased AUM and scale.”
The firm has a 10-year anniversary next year having seen its biggest year this year with USD6 billion in flows.
“Our goal is to continue to grow faster than the industry and that gets more challenging as you get bigger,” he says.
“Many crypto-oriented funds haven’t been around for seven years, so they don’t have much of a track record and BLOK’s 20 per cent a year NAV since inception is outstanding and its last three years annualised return to end-September is 57 per cent a year.”
Magoon clearly loves the ETF industry and says that he is excited to see continued innovation.
