CME plans to launch XRP futures, boosting hopes for an XRP ETF

XRP trades around $2.21 on Thursday following the Chicago Mercantile Exchange (CME) Group's announcement that it is planning to launch a futures product for the remittance-based token on May 19. This will add to the exchange's list of crypto derivatives, including Bitcoin, Ethereum and Solana futures.

CME to launch XRP futures weeks after its Solana product went live

Derivatives exchange CME Group intends to list XRP futures as part of its suite of crypto products. The product is set to go live on May 19, pending a review by regulators.

The XRP futures will allow traders to speculate on the price of XRP without owning the underlying cryptocurrency. The contracts will be cash-settled, meaning any gains or losses will be settled in US Dollars (USD) instead of delivering actual XRP tokens when the contract expires.

The pricing of these contracts will be based on the CME CF XRP-Dollar Reference Rate, which is a benchmark price representing the US Dollar value of XRP. The rate will be calculated once a day at 16:00 GMT using data from major crypto exchanges, ensuring a consistent and transparent settlement price.

Investors in the CME Group's XRP futures will be eligible to trade micro-sized contracts containing up to 2,500 XRP and larger-sized contracts with up to 50,000 XRP.

"Interest in XRP and its underlying ledger (XRPL) has steadily increased as institutional and retail adoption for the network grows, and we are pleased to launch these new futures contracts to provide a capital-efficient toolset to support clients' investment and hedging strategies," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, in a press release.

The XRP futures adds to the exchange's existing product suite, which includes Bitcoin, Ethereum and Solana futures.

Crypto community members are anticipating that the CME's XRP futures launch may strengthen the chances of regulatory approval for several spot XRP exchange-traded fund (ETF) applications. The Securities and Exchange Commission (SEC) cited the CME's Bitcoin and Ethereum futures price feeds as key references during the approval process of ETF filings for both cryptocurrencies.

XRP held steady at $2.21 at publication time, recovering from an earlier decline of $2.13. The remittance-based token is up 6% in the weekly timeframe.