XRP ETF is in the spotlight once again after a major exchange announced plans to launch the crypto’s futures contracts, marking a significant development for Ripple’s native coin. The exchange recently notified the Commodity Futures Trading Commission (CFTC) about listing USD futures for the crypto.
This move has fueled speculation about a potential XRP ETF launch for the crypto, as regulatory clarity around it continues to solidify. Notably, XRP reference rates and real-time index were also launched by CME and CF Benchmarks last month.
Bitnomial Exchange To Launch XRP Futures Contracts
Bitnomial Exchange, a designated contract market, has officially informed the CFTC of its plans to introduce XRP/USD futures contracts. Known as XUS, these contracts will be physically settled and margin-based, reflecting the value of 100,000 units of the crypto.
The exchange’s self-certification with the CFTC signifies that it has independently reviewed and ensured that the new contracts comply with all relevant regulations and standards. Besides, it ensures allowing them to list without prior CFTC approval. This caused major buzz surrounding XRP ETF.
Meanwhile, this development is seen as a crucial step in increasing Ripple’s native crypto’s accessibility and liquidity in the market. By offering futures contracts, Bitnomial is providing traders with a new avenue to speculate on the crypto’s price movements, which could attract more institutional interest.
Additionally, the futures contracts also highlight the growing confidence in the crypto’s market potential, particularly after the conclusion of the Ripple Vs SEC battle.
Speculations Over XRP ETF Launch
The announcement of the futures listing has reignited discussions about the possibility of an XRP ETF. The legal clarity surrounding the crypto’s status as a non-security has led many market observers to speculate that an ETF could be on the horizon.
Ripple CEO Brad Gralinghouse & President Monica Long
For context, Nate Geraci, President of ETF Store, recently took to social media to express his anticipation, asking when the ETF will be launched. His comments reflect the optimism shared by many in the crypto community.
Pro-crypto lawyer Bill Morgan on Wednesday reacted to the listing of XUS (XRP USD Futures). He pointed out that XRP monthly trading average is over 85 billion on cash markets. Whereas, Bitnomial’s spot month limit is 300 million coins, which is just 0.049% of the total deliverable supply.
Meanwhile, the conclusion of the legal case between Ripple and the US SEC has been a pivotal moment for its native crypto. The court ruled that Ripple’s sales of its native crypto to retail investors through exchanges did not violate federal securities laws, paving the way for further regulatory acceptance of the cryptocurrency.
This ruling has boosted confidence in the potential spot XRP ETF launch, which could open up new investment opportunities and further legitimize the crypto in the eyes of institutional investors. As of writing, XRP price was up 2% to $0.578, amid a broader crypto market recovery. In addition, a recent analysis that the XRP is targeting a 22% rally amid the recent buzz on the potential fund launch.
