- CME launches XRP futures contracts, offering regulated access to Ripple’s cryptocurrency.
- Ripple CEO highlights CME launch as a major step for XRP’s institutional growth and adoption.
- Asset managers file with the SEC, signaling rising institutional interest in XRP ETFs.
The Chicago Mercantile Exchange (CME) Group introduced new XRP futures products and Micro XRP futures contracts on May 19. A micro contract involves 2,500 XRP, while a standard contract deals with 50,000 XRP. Traders can use these contracts to trade Ripple’s cryptocurrency, as they are linked to the CME CF XRP-Dollar Reference Rate.
Ripple CEO Brad Garlinghouse called the launch a significant achievement for the growth of XRP among institutions. He mentioned that Hidden Road successfully cleared the first block trade on CME, marking a major step forward in the adoption of XRP by institutional investors.
More institutions will likely show interest in Ripple’s XRP because of the CME’s XRP futures contracts. The ETF Store’s president, Nate Geraci, highlighted that Spot XRP ETF approval could come soon. According to him, providing regulated CME XRP futures might create opportunities for more financial products related to XRP.
Rising Optimism for XRP ETF Approval
Traders on Polymarket have indicated feeling optimistic about the approval of an XRP ETF. Data from the platform shows an 83% possibility that the SEC will accept a Spot XRP ETF this year. The boost in confidence comes from the belief that XRP is advancing within the financial sector.
Source: Polymarket
Analysts Eric Balchunas and James Seyffart anticipated a favorable outcome when the Spot XRP ETF undergoes its rulemaking process. They predicted that approval will be 85% likely in 2025. This is in line with the market’s belief that XRP will soon have a legitimate status as an investment option.
Related: A Comprehensive Review of Ripple and XRP
Grayscale, Bitwise, and WisdomTree are some of the asset managers seeking approval from the SEC for starting Spot XRP ETFs. The rise in filings proves that institutional investors are considering investing in XRP and various crypto assets.
The introduction of XRP futures on CME is an essential step for the crypto market. It adds more value to Ripple trading and attracts more institutional investors to the cryptocurrency. The upcoming availability of more regulated XRP ETFs suggests good things for XRP.
The increase in XRP activity signals that XRP could be more important to the financial world. It opens the doors for other cryptocurrencies to achieve the same legitimacy through institutional approval.
