XRP Futures Achieve $1.5M in Trading Volume on CME Launch

XRP futures contracts made their debut on the CME Group’s derivatives exchange on May 19, achieving a trading volume of at least $1.5 million in the initial session, marking a significant start for this prominent cryptocurrency.

On the launch day, data from CME indicated that four standard contracts, representing 50,000 XRP each, were traded, amounting to approximately $480,000 in notional volume with an average price of $2.40. Additionally, a substantial portion of trading occurred through 106 micro contracts, each representing 2,500 XRP, which contributed over $1 million to the overall volume. These contracts are settled in cash and are linked to the CME CF XRP-Dollar Reference Rate, published daily at 4:00 P.M. London time. This dual structure aims to engage both institutional investors and smaller participants, providing versatile options for various trading and hedging approaches.

Ripple’s CEO, Brad Garlinghouse, announced on X that the introduction of regulated XRP futures on the CME represents a significant achievement for institutional adoption of XRP, highlighting that the first block trade was carried out by Hidden Road.

This development occurs following the CFTC’s designation of XRP as a commodity, which granted the regulatory approval necessary for the CME to launch these futures contracts.

Experts believe that this launch could bolster prospects for a spot XRP ETF, with ETF Store president Nate Geraci commenting that such a product is “only a matter of time.”

Although initial trading volumes may seem modest, XRP’s presence on the CME enhances market dynamics for this major token, influencing price discovery similarly to the effects seen in BTC and ETH futures when the U.S. market becomes active.