CME Group Expands Crypto Derivatives With XRP Futures Contracts
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CME Group has announced plans to launch XRP futures, pending regulatory review. Market participants will have the option to trade both a small-sized contract (2,500 XRP) and a larger-sized contract (50,000 XRP).
The CME Group XRP futures will be cash-settled and based on the CME CF XRP-Dollar Reference Rate, a daily benchmark for the price of XRP in US dollars.
CME Group Aims To Expand Crypto Derivatives With XRP Futures
Giovanni Vicioso, Global Head of Crypto Products at CME Group, stated that innovation in the digital asset space continues to progress. He added that market participants are increasingly seeking regulated derivatives to manage risks across a wider range of tokens.
Vicioso highlighted the growing interest in XRP and its underlying ledger (XRPL), noting that institutional and retail adoption for the network continues to rise. He expressed that CME is pleased to launch these new futures contracts to offer a capital-efficient toolset to support clients’ investment and hedging strategies.
XRP futures will be added to CME’s crypto product suite, which already includes Bitcoin and Ether futures and options, as well as recently launched Solana futures. XRP-related products reportedly generated $37.7 million in a week.
Although the price of XRP dropped by around 2% in the last 24 hours, it has stabilized following the announcement of the XRP futures launch. This indicates renewed investor interest and optimism regarding regulated derivatives for the asset.
Analysts noted that XRP appears to be forming an inverse head and shoulders pattern, potentially signaling a bullish breakout towards $2.70. They mentioned that if XRP breaks through the neckline support at $2.40, it could rise further to $2.70. On-chain data shows that XRP’s price is currently at $2.18, and overall financial data remains positive.
CME Group Aims To Boost XRP ETF Approval Chances With Futures Listing
According to report, XRP investment products made $37.7 million last week. This year, $214 million has been added to these products, almost as much as Ethereum. In comparison, Ethereum lost $26.7 million, and Bitcoin lost $6 million in the same time.
CME’s decision to offer XRP futures is seen as helping the chances of the SEC approving XRP ETFs. A regulated futures market is important for the SEC to approve crypto ETFs because it helps them track the market and protect investors from manipulation.
Coinbase also launched a futures product for XRP, so now there is a regulated market for XRP in the US. This is important because the SEC had used the lack of a controlled market to reject other altcoin ETFs in the past.
With XRP futures now listed on the Commodity Futures Trading Commission’s list, the SEC’s reason for not approving XRP ETFs may no longer apply.
Additionally, with Paul Atkins, the new SEC Chair who supports crypto, in charge, it looks like the barriers are going down. The SEC is expected to make decisions on five XRP ETF applications by mid-October, and there are 72 other crypto-related ETF applications waiting to be reviewed. Solana and XRP now have a better chance of getting approval.
