XRP Futures ETF Debuts on CME, Institutional Interest Surges

XRP's latest price was $2.36, down 0.72% in the last 24 hours. Ripple [XRP] has been attracting renewed institutional interest after its regulatory headwinds finally came to an end after four years.

On the 19th May, CME Group launched its XRP Futures ETF, recording an impressive daily trading volume on debut. The newly launched XRP ETFs have quickly outpaced Ethereum [ETH] Futures ETFs in performance, signaling robust institutional interest.

If this momentum continues, XRP could challenge Bitcoin [BTC] Futures ETFs. However, reaching that level remains ambitious. The early success of XRP products strengthens the case for Future spot ETF approvals.

CME Group data reveals that XRP Futures had a strong debut. On launch day, four standard contracts traded hands, each representing 50,000 XRP. This accounted for about $480,000 in notional volume at an average price.

Most of the activity came from 106 micro contracts, each covering 2,500 XRP. Together, they contributed over $1 million in additional volume. This trading pattern indicates that large players are entering the market. At the same time, smaller institutional participants are actively engaging with XRP Futures from the start.

Despite the SEC delaying its ruling on multiple crypto ETFs, including those tied to XRP and Solana [SOL], momentum around XRP investment vehicles keeps growing.

Remarking on the same, the president of the ETF Store, recently emphasized on X (formerly Twitter) that spot XRP ETFs are inevitable. This highlights the significance of CME’s live, CFTC-regulated XRP Futures contracts.

Sentiment on decentralized prediction platform Polymarket also remains optimistic, with an 83% probability priced in for eventual approval.

But, with Franklin Templeton’s application now pushed to the 17th of June, the coming weeks may prove pivotal in shaping the next phase of institutional access to XRP.

The SEC delayed 21Shares’ filing for an XRP ETF despite high optimism from recent regulatory developments. On top of this first setback, the Commission also delayed at least three other altcoin ETF applications.

Nonetheless, ETF analysts are confident that the SEC will eventually approve these products. Government institutions operate on a slow timeline, and the Commission will generally delay whenever it can feasibly do so.

The XRP ETF is currently the subject of significant community hype, since the world’s first such product began trading in Brazil last month. XRP Futures trading also went live on the CME, further building enthusiasm. However, this anticipation can also create community impatience, as evidenced by fake approval rumors taking off like wildfire.

Despite these good feelings, SEC delays have persisted. Today, the Commission postponed 21Shares’ XRP ETF application, pushing another proposal back by at least three weeks.

In addition to 21Shares’ XRP offering, the SEC gave the same treatment to a Dogecoin product from Grayscale. Yesterday, the Commission announced similar delays for five different Solana ETF applications, adding to the disappointment.

James Seyffart, a prominent ETF analyst, addressed these concerns: “Delays on spot crypto ETFs are expected. A bunch of XRP ETPs have dates in next few days. If we’re gonna see early approvals from the SEC on any of these assets — I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early Q4,” Seyffart claimed.

He went on to state that the Commission usually takes as much time as possible to thoroughly consider ETF applications. If the SEC isn’t forced to decide on an XRP ETF until October, it’ll take all the time it can get.

In addition to the bureaucratic minutiae of a transformative decision like this, the SEC also has to handle a wide range of other duties. After postponing the XRP and Dogecoin ETFs, the SEC issued similar delays for two more altcoin-related products. Despite these setbacks, the odds of eventual approval are still pretty high.

Previously, most analysts emphasized that Litecoin would be the first altcoin ETF to get approval after Ethereum. This is due to the asset’s clear status as a commodity. Yet, the commission also postponed different Litecoin ETF applications earlier.

In any event, it looks like the XRP ETF and all other novel altcoin filings should prepare for a long wait. The SEC is giving some incredibly bullish signals about its views on crypto ETF regulation.

Nonetheless, government institutions operate on a different time scale from the rapid-firing crypto market. The Commission won’t rush, no matter how good the market is.