The launch of XRP futures contracts has sparked speculation about the potential launch of an ETF as XRP eyes future listings on major exchanges.
A significant development for Ripple’s native coin, XRP, is again in the spotlight as a major exchange announces plans to introduce the XRP futures contracts. The exchange recently informed the Commodity Futures Trading Commission (CFTC) of its intention to list USD futures for the crypto. Trading is anticipated to commence today. This action has intensified speculation regarding the potential introduction of an ETF for cryptocurrency as regulatory clarity continues to be established.
Bitnomial Exchange to Introduce XRP Futures Contracts
The CFTC has been duly notified by Bitnomial Exchange, a designated contract market, of its intention to introduce USD/XRP futures contracts. These contracts, referred to as XUS, will be tangibly settled and margin-based, reflecting the value of 100,000 units of the cryptocurrency.
The exchange’s self-certification with the CFTC indicates that it has independently evaluated and verified that the new contracts adhere to all pertinent regulations and standards. In addition, it guarantees that they may list without obtaining prior CFTC approval.
This development is a critical step in expanding Ripple’s native crypto market liquidity and accessibility. Bitnomial is offering futures contracts to traders, which could potentially garner more institutional interest by providing them with a new avenue to speculate on the price movements of the crypto.
Furthermore, future contracts underscore the increasing confidence in the potential of the cryptocurrency market, particularly in the aftermath of the Ripple vs SEC dispute.
Speculation Regarding the Launch of an Exchange-Traded Fund
The announcement of the futures listing has rekindled the potential for an XRP ETF. Many market observers have speculated that an ETF may be imminent due to the legal certainty surrounding the crypto’s classification as a non-security.
To provide context, Nate Geraci, President of ETF Store, recently expressed his excitement on social media, inquiring about the ETF’s launch date. His remarks are indicative of the optimism that is prevalent among numerous members of the crypto community.
In the interim, resolving the legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has been a critical turning point for its native cryptocurrency. The court determined that Ripple’s sales of its native crypto to retail investors through exchanges did not violate federal securities laws, thereby facilitating the cryptocurrency’s further regulatory adoption.
This ruling has increased public confidence in the prospective launch of a spot ETF, which has the potential to create new investment opportunities and further legitimize the crypto in the eyes of institutional investors. In a broader crypto market recovery, the price of XRP was up 2.43% to $0.5789 at the time of writing. In addition, a recent analysis indicates that the XRP is poised for a 22% increase in response to the recent speculation regarding the potential launch of an ETF.
