XRP futures contracts began trading on CME Group’s derivatives platform on May 19, surpassing $15,6 million in trading volume as of 9:20 P.M. UTC across standard and micro contract offerings.
According to CME data, 120 standard XRP contracts traded at an average price of $2.3965, representing approximately $14.3 million in notional volume. Each contract equates to 50,000 XRP.
Additionally, 206 micro contracts, each representing 2,500 XRP, were traded throughout the day, recoding over $1.2 million in volume.
The launch placed CME’s XRP futures ahead of platforms like dYdX in notional daily volume, based on Coinglass data. It was close to BitMEX’s $19.3 million and HTX’s $20.9 million daily trading volume.
The XRP futures contracts are cash-settled and benchmarked to the CME CF XRP-Dollar Reference Rate, which is calculated daily at 4:00 P.M. London time.
The dual contract structure accommodates a range of trading strategies, from retail hedging to institutional portfolio management.
Giovanni Vicioso, the global head of cryptocurrency products at CME Group, said in a prior statement that demand for institutional-grade derivatives products has expanded beyond Bitcoin (BTC) and Ethereum (ETH).
He cited growing interest in the XRP Ledger (XRPL) and increasing adoption of XRP as catalysts behind the product’s launch.
CME’s decision to list XRP futures followed the Commodity Futures Trading Commission’s (CFTC) classification of XRP as a commodity in ongoing regulatory matters.
ETF implications
In addition to appeasing the growing institutional interest in regulated XRP exposure, the availability of CFTC-regulated XRP futures now provides a critical market signal for proponents of a spot XRP ETF.
In a May 19 social media post, ETF Store president Nate Geraci noted that spot XRP ETFs coming to the US is “only a matter of time.”
According to data provided by Bloomberg senior ETF analyst Eric Balchunas, eight XRP-related spot ETFs are waiting for the US Securities and Exchange Commission (SEC) approval.
Analysts historically saw the presence of regulated futures markets as a key factor in meeting the SEC’s criteria for evaluating spot crypto ETF proposals.
Consequently, this development could boost the 65% odds of a spot XRP ETF approval estimated by analysts in February.
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