CME Group Set to Launch XRP Futures on May 19, Enhancing Crypto Market Options

CME Group plans to launch XRP futures on May 19, pending approval. Two contract sizes will be available: micro (2,500 XRP) and standard (50,000 XRP). Interest in XRP is rising, and the products aim to support risk management for traders. Recent Q1 figures show growth in crypto derivatives. Robinhood will also offer these products, enhancing retail access. The listing underscores the increasing investor demand for regulated scope in digital assets.

CME Group, the prominent derivatives marketplace, has just revealed its plan to introduce XRP futures beginning May 19, pending regulatory approval. Market traders will have options between a smaller contract, which consists of 2,500 XRP, and a larger one at 50,000 XRP. Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, mentioned that the growing interest in regulated derivatives reflects a shift in how traders manage risks with various tokens.

Vicioso added that XRP and its ledger (XRPL) have seen an uptick in popularity among both institutional and retail investors, prompting CME Group to create these futures contracts. This move is aimed at providing innovative financial instruments for clients seeking investment and hedging opportunities. The futures will be cash-settled and reference the CME CF XRP-Dollar Reference Rate, calculated daily at 4:00 p.m. London time.

These XRP futures are set to complement CME’s existing crypto offerings, which include Bitcoin and Ether futures and options, alongside the recently introduced SOL futures. A look at Q1 performance reveals significant growth in the crypto derivatives market, with an average daily volume of 198,000 contracts, translating to $11.3 billion, marking a 141% increase from the previous year. Open interest also surged, hitting 251,000 contracts valued at $21.8 billion, up 83% from last year.

Robinhood is also gearing up to offer CME Group XRP futures, reflecting its commitment to broadening retail access to futures trading, as stated by JB Mackenzie, VP and GM of Futures and International at Robinhood. He noted that the trading platform’s users are eager for more digital asset options and will soon be able to engage in futures trading across 40 products.

Sal Gilbertie, CEO of Teucrium, highlighted that XRP is designed for practical financial transactions, facilitating swift and low-cost global transfers. He mentioned that the Teucrium 2x Daily Long XRP ETF obtained $35 million in assets under management within its first 10 trading days, showcasing robust demand for regulated digital asset access. The announcement of CME’s XRP futures indicates another significant step in the development of this ecosystem.

These futures products will, of course, comply with CME rules. Additional details can be accessed at www.cmegroup.com/xrp.

With reported activities in regulated perpetual futures trading ramping up in the U.S. and other institutions like Bitwise expanding their reach in Europe, the landscape of cryptocurrency trading continues to evolve rapidly.