XRP futures were introduced on the CME Group’s derivatives platform, achieving $1.5 million in trading volume on their inaugural day.
Key Points:
- The contracts, which are cash-settled, reference the CME CF XRP-Dollar Reference Rate, allowing for a range of trading strategies.
- This launch aligns with the CFTC’s recent classification of XRP as a commodity, setting the stage for potential spot XRP ETFs.
On May 19, XRP futures began trading, recording more than $1.5 million on the first day.
CME data disclosed that 4 standard contracts (each standing for 50,000 XRP) exchanged hands, amounting to roughly $480,000 at an average price of $2.40. Additionally, 106 micro contracts (2,500 XRP each) accounted for over $1 million in extra volume.
The launch represents a significant milestone for XRP, according to Ripple CEO Brad Garlinghouse, who highlighted its potential to enhance price discovery mechanisms in cryptocurrency trading. Garlinghouse noted the execution of the initial block trade by Hidden Road.
In a tweet, Nate Geraci, President of ETF Store, remarked that the launch of regulated XRP futures signifies a critical advancement for XRP. He anticipates that a spot XRP ETF is imminent.
Although initial volumes seem modest, XRP’s presence on CME is expected to affect market dynamics, similar to Bitcoin and Ethereum futures.
