TL;DR
- CME Group announced that it will launch XRP futures on May 19, subject to regulatory approval, adding another asset to its crypto offerings.
- The contracts will be cash-settled and will have two available sizes: 2,500 XRP and 50,000 XRP, based on a daily reference rate.
- Robinhood and Teucrium are already preparing to trade these products, reflecting the growing institutional and retail demand for XRP derivatives.
CME Group announced that it will add XRP futures to its financial product catalog. The company stated that these new contracts will be available starting May 19, provided they obtain the necessary regulatory approval. This addition will expand the crypto derivatives offering, which already includes Bitcoin, Ethereum, and, since March, Solana futures and options.
The XRP futures will be cash-settled and based on the CME CF XRP-Dollar Reference Rate, a daily reference rate calculated at 4:00 p.m. London time. The platform will offer two contract sizes: a micro contract for 2,500 XRP, and a larger contract for 50,000 XRP. This decision aims to provide flexible options for both institutional and retail traders.
Why Did CME Group Choose XRP?
Giovanni Vicioso, global director of cryptocurrency products at CME Group, explained that the sustained growth in the adoption of XRP and its underlying technology motivated the inclusion of these futures. The goal is to provide more efficient investment and hedging tools for those seeking exposure to Ripple’s cryptocurrency. Currently, XRP holds the fourth position in market capitalization within the crypto market.
The crypto derivatives market at CME saw significant growth during the first quarter of the year. The average daily volume reached 198,000 contracts, equivalent to $11.3 billion in notional value, representing a 141% increase compared to the same period last year. The average open interest also grew, with 251,000 contracts outstanding, an 83% year-over-year increase.
Robinhood Will Add CME XRP Futures to Its Platform
On the other hand, Robinhood plans to add CME XRP futures to its platform, allowing retail investors to access this product. Currently, the app offers 40 futures products that can be traded through its mobile platform, designed for fast and precise transactions.
Finally, Teucrium, a fund manager specialized in regulated assets, highlighted the institutional interest in XRP-linked products. Its 2x Daily Long XRP ETF surpassed $35 million in assets under management during its first ten days of trading, confirming the enormous demand for regulated instruments linked to cryptocurrencies with specific financial applications
