Amplify ETFs Expands Its Crypto ETF Offerings with Stablecoin and Tokenization Funds

Summary: Amplify ETFs has launched two new exchange-traded funds (ETFs) focused on key elements of digital finance: the Amplify Stablecoin Technology ETF (STBQ) and the Amplify Tokenization Technology ETF (TKNQ). These funds are designed to leverage the growth of stablecoins and tokenized assets, which are gaining traction in the blockchain ecosystem.

Key Takeaways

Amplify ETFs has introduced two new ETFs: STBQ (Stablecoin Technology) and TKNQ (Tokenization Technology).
STBQ aims to provide exposure to the growing stablecoin market, projected to expand significantly over the next few years.
TKNQ focuses on tokenized real-world assets, which are expected to see substantial growth due to increasing adoption by institutions.
Both funds are positioned to benefit from increasing regulatory clarity in the digital finance sector.
Amplify has a history of innovation in digital finance, aiming to provide investment solutions that align with market advancements.

Tokenization of debt

Exploring the Stablecoin Economy with STBQ

The Amplify Stablecoin Technology ETF (STBQ) aims to give investors targeted access to stocks and digital assets that support the stablecoin ecosystem. Stablecoins are designed to maintain their value relative to traditional currencies and now facilitate over $9 trillion in transactions annually, according to industry reports.

Market analysts believe the stablecoin market could grow from roughly $300 billion today to more than $3.7 trillion by 2030 as diverse use cases emerge in payments, trading, and settlement.

STBQ focuses on companies and crypto assets that generate significant revenue from payments technology, digital asset infrastructure, and trading platforms. The fund strives to match the performance of the MarketVector Stablecoin Technology Index (MVSTBQ) before fees and expenses. In each rebalance, 25% to 50% of the fund may be allocated to crypto assets connected to stablecoins and decentralized finance applications.

Targeting Tokenization of Assets with TKNQ

The Amplify Tokenization Technology ETF (TKNQ) is oriented towards companies and digital assets that are advancing the tokenization of tangible assets. Tokenization refers to the process of converting assets like stocks, bonds, and real estate into blockchain-based tokens, allowing fractional ownership, quicker transactions, and enhanced transparency.

Experts predict that tokenized assets could grow from around $176 billion today to over $3.6 trillion by 2030, fueled by increasing participation from institutions and the evolution of regulatory measures.

TKNQ invests in tokenization platforms, blockchain infrastructure providers, exchanges, custodians, brokerages, and financial institutions that facilitate the digital representation of physical assets. The fund aims to track the MarketVector Tokenization Technology Index (MVTKNQ) and will have 25% to 50% exposure to qualifying crypto-related assets at each rebalance.

The Regulatory Landscape and Institutional Engagement

The introduction of STBQ and TKNQ occurs against a backdrop of increasing regulatory clarity around digital finance infrastructure. In regions like the United States and Europe, evolving legal frameworks are increasingly recognizing stablecoins and tokenization as integral parts of the modern financial landscape. This development is fostering greater institutional involvement, particularly in areas like payments, settlement, and capital market infrastructures.

Executive Insights and Broader ETF Strategy

Christian Magoon, the CEO of Amplify ETFs, remarked, “Amplify has been dedicated to digital finance innovation for more than eight years. Stablecoins and tokenization are becoming vital components of modern financial systems. With STBQ and TKNQ, we are continuing our mission to offer ETF solutions that enable investors to engage with these evolving market segments.”

Further Innovations: XRP-Based Option Income ETF

Adding to its innovative lineup, Amplify ETFs launched the Amplify XRP 3% Monthly Premium Income ETF (XRPM) in November. This ETF is the first of its kind based on XRP and aims to balance income generation with capital growth. XRPM offers exposure to the dynamics of XRP's price while implementing a covered call strategy for steady, recurring income.

These new product offerings from Amplify ETFs underline the growing importance of cryptocurrency and blockchain in modern financial ecosystems.