Wall Street is buzzing as new futures contracts for XRP on the CME Group generate significant appeal. Since their inception on May 19, XRP futures and Micro XRP futures have experienced substantial demand from both institutional investors and individual traders.
In a recent report by the CME Group, it was disclosed that on the day of the launch, the trading volume reached $19.3 million across 15 firms and four retail trading platforms. The broad spectrum of participation, from ETF issuers to everyday traders, bears testament to the strong demand for XRP futures.
Since its launch, XRP futures have accumulated a trading volume of $542 million. An impressive 45% of this volume originates from outside North America, demonstrating XRP’s powerful global influence. Open interest has also ascended to $70.5 million.
The CME Group declared its XRP futures in April to broaden its cryptocurrency derivatives offerings, which already encompass Bitcoin, Ethereum, and Solana. XRP contracts are available in two sizes, standard (50,000 XRP) and micro (2,500 XRP), and are cash-settled based on the CME CF XRP-Dollar Reference Rate.
These developments are significant, considering that the SEC has previously emphasized the necessity of a regulated futures market when green-lighting spot Bitcoin and Ethereum ETFs. With XRP Futures now operational under CFTC supervision, experts suggest this could pave the way for a spot XRP ETF. XRP, alongside Solana and Litecoin, is now considered a leading contender for a spot ETF with a 95% approval probability. Industry insiders believe that the introduction of XRP futures by the CME has removed a significant obstacle for a spot XRP ETF, implying that it’s only a matter of time before spot XRP ETFs become a reality.
According to the CME, recent XRP momentum has been spurred on by Ripple’s significant actions such as the acquisition of Hidden Road for $1.25 billion and the introduction of RLUSD, a stablecoin enhancing XRP’s utility, liquidity, and activity in the DeFi sector.
