CME's XRP Futures Launch Achieves $15M in Daily Volume, Raising Optimism for ETF Approval

XRP futures contracts launched on the CME Group’s derivatives platform on May 19, achieving a trading volume exceeding $15.6 million by 9:20 PM UTC across both standard and micro contracts.

Data from CME indicates that 120 standard XRP contracts were traded at an average rate of $2.3965, totaling around $14.3 million in notional volume. Each contract corresponds to 50,000 XRP.

Furthermore, 206 micro contracts, each equal to 2,500 XRP, were exchanged during the day, resulting in over $1.2 million in volume.

This launch positioned CME’s XRP futures above competitors like dYdX in terms of notional daily volume, drawing from Coinglass data. It approached BitMEX’s $19.3 million and HTX’s $20.9 million daily trading figures.

The contracts are settled in cash and are based on the CME CF XRP-Dollar Reference Rate, calculated daily at 4:00 PM London time.

This dual-contract format supports diverse trading approaches, catering to both retail hedging and institutional portfolio strategies.

Giovanni Vicioso, who leads cryptocurrency products at CME Group, previously mentioned that the demand for high-quality derivatives has widened beyond Bitcoin (BTC) and Ethereum (ETH).

He highlighted the increasing interest in the XRP Ledger (XRPL) and the rising use of XRP as key drivers for the product’s introduction.

The decision to offer XRP futures came after the Commodity Futures Trading Commission (CFTC) classified XRP as a commodity in ongoing regulatory discussions.

ETF implications

The introduction of CFTC-regulated XRP futures is not only addressing the growing need for institutional-level XRP exposure but also serves as an important market indicator for advocates of a spot XRP ETF.

In a social media update on May 19, ETF Store president Nate Geraci commented that the arrival of spot XRP ETFs in the US is “merely a matter of time.”

As reported by Bloomberg senior ETF analyst Eric Balchunas, there are eight XRP-related spot ETFs pending approval from the US Securities and Exchange Commission (SEC).

Historically, the existence of regulated futures markets has been viewed as a significant factor influencing the SEC’s assessment of spot cryptocurrency ETF applications.

As a result, this advancement could enhance the estimated 65% likelihood of approval for a spot XRP ETF as projected by analysts in February.