CME Group Plans XRP Futures Launch on May 19

CME Group is planning to introduce XRP futures on May 19, subject to regulatory approval. The new product will offer two contract sizes: one tied to 2,500 XRP and another to 50,000 XRP. These contracts are designed to cater to different investment strategies and will be cash-settled, benchmarked against the CME CF XRP-Dollar Reference Rate, which is calculated daily at 4:00 P.M. London time.

Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, highlighted the increasing demand for XRP and its native blockchain, the XRP Ledger (XRPL). He emphasized that the upcoming futures will provide a capital-efficient option for portfolio management and risk hedging, appealing to both institutional and retail investors.

XRP is currently the fourth-largest cryptocurrency by market capitalization. The launch of XRP futures by CME Group will expand the company’s range of crypto derivatives, which already includes Bitcoin, Ethereum, and Solana. Vicioso noted that there is a growing demand for regulated derivatives products covering a broader range of tokens as the digital asset market continues to evolve.

CME’s move into XRP futures follows the introduction of CFTC-regulated XRP futures by Coinbase Derivatives. This parallel development strengthens XRP’s presence in the US financial market and could be significant for the potential approval of spot XRP exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).

Several asset managers, including 21Shares, Canary, and Bitwise, have already submitted proposals for a spot XRP ETF. The launch of XRP futures under CFTC oversight may address a previous hurdle cited by the SEC in denying spot ETF applications for altcoins, potentially paving the way for approval.