CME Group is set to launch XRP futures on May 19, pending regulatory approval. The new product will include two contract sizes, one tied to 2,500 XRP and another to 50,000 XRP. These contracts will be cash-settled and based on the CME CF XRP-Dollar Reference Rate. Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, highlighted the increasing demand for XRP and the XRP Ledger from both institutional and retail investors. XRP is currently the fourth-largest cryptocurrency by market capitalization, trading at around $2.19.
The introduction of XRP futures by CME Group comes after Coinbase Derivatives launched its CFTC-regulated XRP futures. These developments are seen as strengthening XRP’s presence in the US financial market. Moreover, the launch of XRP futures could have significant implications for the approval of spot XRP exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Tony Edwards, the founder of the Thinking Crypto podcast, believes that the introduction of XRP futures is crucial for the approval of spot XRP ETFs by the SEC.
In the past, the SEC has cited the absence of a regulated futures market as a reason for denying spot ETF applications for alternative cryptocurrencies. With the listing of XRP futures under CFTC oversight, this hurdle may no longer be an issue. Asset managers such as 21Shares, Canary, and Bitwise have already submitted proposals for spot XRP ETFs, with JPMorgan predicting that these products could attract up to $8 billion in assets within their first year. These developments signify a growing interest in regulated derivatives products covering a wider range of digital assets as the crypto market continues to evolve.
By expanding its offerings to include XRP futures, CME Group aims to provide investors with a capital-efficient option for managing their portfolios and hedging against risks. The addition of XRP futures alongside existing derivatives products like Bitcoin, Ethereum, and Solana demonstrates the company’s commitment to meeting the evolving needs of the digital asset market. With XRP futures set to launch on May 19, pending regulatory approval, CME Group is positioning itself as a key player in the growing crypto derivatives market. The introduction of XRP futures could also pave the way for the approval of spot XRP ETFs by the SEC, opening up new investment opportunities for both institutional and retail investors.
