CME Group Launches XRP Futures ETF Today #NewsETFs

Ripple’s XRP has been making headlines repeatedly for its efforts to encourage mainstream adoption. Despite a setback last week on the SEC lawsuit, positive news has kept coming. Today, CME Group is launching the XRP futures ETF, which is yet another milestone for the community. This strategic move is expected to bolster the Ripple Coin’s institutional demand and adoption.

CME Group Launches XRP Futures ETF Today: Know Details

Today (May 19), the world’s leading derivatives marketplace, Chicago Mercantile Exchange (CME) Group, is launching XRP futures and Micro XRP futures. The platform will debut the futures in two contract sizes: a micro contract covering 2,500 tokens and a larger contract covering 50,000, both based on the CME CF XRP-Dollar Reference Rate.

In response to the development, lawyer Bill Morgan stated, these “cash-settled futures contracts” could drive the token’s institutional demand in multiple ways. Bill highlighted the significance of XRP futures for the community in his X post:

These are futures contracts. Do you know what that means for demand for XRP? Aren’t these cash-settled futures contracts?

It is noteworthy that CME’s futures contracts launch is boosting expectations for the SEC’s potential approval of spot ETFs. While the US Securities and Exchange Commission (SEC) has acknowledged the ETF applications submitted by multiple asset managers, the final word is still uncertain. At the same time, Brazil launched the first XRP ETF, as recently reported by CoinGape.

How Will CME Group’s Futures Contracts Boost Adoption?

Giovanni Vicioso, the Global Head of Crypto Products at CME Group, recently addressed the growing demand for Ripple’s token among institutional and retail buyers. Reinforcing Vicioso’s comments, Bill Morgan highlighted the move’s potential influence on the token’s adoption.

Significantly, the futures contracts will drive up demand as they provide institutional investors with a new way to gain exposure to XRP. In addition, it may increase liquidity in the market as traders and investors take positions in anticipation of future price movements. This move comes on the heels of CME’s recent foray into altcoin futures, including Solana, underscoring the increasing institutional appetite for diversified crypto assets.

Moreover, the CME Group’s move could boost the Ripple coin price’s potential rally. However, ahead of the XRP futures, XRP price sits at $2.24 today, down by 1.72%. While today’s slump is mainly due to macro factors, the token surged by a notable 12% over the past month, despite a weekly dip of 2.11%.

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Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.