XRP News Today: XRP Futures Launch on CME Boosts ETF Hopes

The recent launch of XRP futures on the Chicago Mercantile Exchange (CME) has sparked renewed optimism among investors and industry experts regarding the potential approval of an XRP exchange-traded fund (ETF). This development is seen as a significant step towards securing regulatory approval for an XRP ETF, following the precedent set by Bitcoin and Ethereum, which have already secured ETFs.

Nate Geraci, president of the ETF Store and cofounder of the ETF Institute, believes this futures milestone could be the springboard XRP needs to secure an exchange-traded fund. The U.S. Securities and Exchange Commission (SEC) is set to make a decision on the Franklin XRP Fund by June 2025, and the successful introduction of XRP futures is seen as a significant step towards securing regulatory approval for an XRP ETF.

Institutional adoption of XRP has received a boost with the launch of XRP futures on the CME. This move indicates that major financial players are becoming more confident in XRP. The futures contracts allow investors to bet on XRP’s future price without actually owning the coins, making it easier and safer for big institutions, like banks and hedge funds, to get involved with XRP in a regulated way. The contracts have been approved by the CFTC, a U.S. regulator, which adds trust and makes it more appealing to serious investors.

Ripple’s CEO, Brad Garlinghouse, has also weighed in on the matter, calling the launch of XRP futures on the CME a big moment for XRP and the broader market. He mentioned that Hidden Road, a trading firm, made the first big trade on CME, and he called it an important step in XRP’s growth.

Following the futures launch, Geraci predicted that an XRP ETF could be next. His optimism isn’t unfounded. A decision on the proposed Franklin XRP Fund, a spot ETF, is due from the SEC on June 17, 2025. If approved, it would open the door for even broader investor access, similar to how Bitcoin and Ethereum ETFs have brought in institutional capital and increased legitimacy.

Adding weight to the argument is a 2023 ruling by the DC Circuit Court that criticized the SEC for denying Grayscale’s Bitcoin spot ETF while allowing futures-based ones. The court emphasized that if a crypto asset has an active CME futures market, it’s hard to justify blocking a spot ETF. XRP now fits that profile.

Despite the positive headlines, XRP’s price has shown little movement in the short term. It’s currently down 0.77% over the past 24 hours but has seen a 63.87% spike in trading volume, signaling heightened interest. As of now, XRP trades at $2.37.

While XRP trades sideways, many believe the groundwork is being laid for a bigger run, especially if the ETF dream becomes a reality. The anticipation of an XRP ETF has already led to increased institutional interest in the cryptocurrency, with the price of XRP climbing to $2.13 on May 7, 2025. This surge in price is attributed to the launch of CME XRP futures and the ongoing SEC settlement, which has driven institutional momentum for the cryptocurrency.

The SEC's decision on the Franklin XRP Fund is expected to have a significant impact on the cryptocurrency market. The approval of an XRP ETF could lead to increased investment in the cryptocurrency, driving up its price and further legitimizing it as a viable investment option. However, the SEC has delayed its decision on the XRP ETF until after the Ripple update, indicating that the regulatory body is still evaluating the potential risks and benefits of approving such a financial product. The outcome of this decision will be closely watched by investors and industry experts alike, as it could set a precedent for the approval of other cryptocurrency ETFs in the future.