XRP News Today: XRP Futures Debut on CME with $15.6M Volume

XRP futures contracts made their debut on the CME Group’s derivatives platform on May 19, achieving a significant milestone with a trading volume exceeding $15.6 million by 9:20 P.M. UTC. This volume was distributed across both standard and micro contract offerings, indicating a robust initial interest from traders.

CME data revealed that 120 standard XRP contracts were traded at an average price of $2.3965, amounting to approximately $14.3 million in notional volume. Each standard contract represents 50,000 XRP. Additionally, 206 micro contracts, each representing 2,500 XRP, were traded throughout the day, contributing over $1.2 million in volume.

The launch of XRP futures on CME positioned the platform ahead of competitors like dYdX in terms of notional daily volume. It was also close to the daily trading volumes of BitMEX and HTX, which were $19.3 million and $20.9 million, respectively.

The XRP futures contracts are cash-settled and are benchmarked to the CME CF XRP-Dollar Reference Rate, which is calculated daily at 4:00 P.M. London time. This dual contract structure is designed to accommodate a variety of trading strategies, from retail hedging to institutional portfolio management.

Giovanni Vicioso, the global head of cryptocurrency products at CME Group, previously stated that the demand for institutional-grade derivatives products has expanded beyond Bitcoin (BTC) and Ethereum (ETH). He highlighted the growing interest in the XRP Ledger (XRPL) and the increasing adoption of XRP as key factors behind the launch of the XRP futures product.

CME’s decision to list XRP futures followed the Commodity Futures Trading Commission’s (CFTC) classification of XRP as a commodity in ongoing regulatory matters. This regulatory recognition is crucial for the legitimacy and acceptance of XRP in the financial markets.

The availability of CFTC-regulated XRP futures now provides a critical market signal for proponents of a spot XRP ETF. The presence of regulated futures markets has historically been seen as a key factor in meeting the SEC’s criteria for evaluating spot crypto ETF proposals. This development could boost the 65% odds of a spot XRP ETF approval estimated by analysts in February.

In a social media post on May 19, ETF Store president Nate Geraci noted that the approval of spot XRP ETFs in the US is “only a matter of time.” This sentiment is supported by the fact that eight XRP-related spot ETFs are currently awaiting approval from the US Securities and Exchange Commission (SEC).