CME Launches XRP Futures Contracts

XRP futures started trading on the Chicago Mercantile Exchange's (CME) derivatives platform on Monday, becoming the first regulated futures tracking

The Chicago Mercantile Exchange (CME) has launched XRP futures on its derivatives platform, becoming the first regulated futures tracking the price of XRP in the U.S.

The futures, which are available for trading in two contract sizes of 2,500 XRP and 50,000 XRP, will both be cash-settled and based on the CME CF XRP-Dollar Reference Rate. The rate is calculated daily at 4:00 p.m. London time and tracks the midpoint of prices in the major XRP futures and options contracts at the time.

CME already offers bitcoin futures and ethereum futures, which are both among the most popular crypto futures contracts in the world. The exchange also offers futures on other digital assets, including Stellar (XLM), TRON (TRX), and Cardano (ADA).

The launch of XRP futures comes as several U.S. issuers are seeking to launch a spot XRP exchange-traded fund (ETF). Such a fund would allow investors to gain exposure to XRP through their brokerage accounts.

Earlier this year, the SEC approved the first spot bitcoin and ethereum ETFs. However, it has yet to rule on any applications for a spot crypto ETF.

In March, the University of California at Irvine's (UCI) investment arm filed to launch a Bitcoin ETF, becoming the first to apply for such a product. Shortly after, Charles Schwab, the largest brokerage firm in the U.S., applied to launch a Bitcoin ETF.

Later in April, the crypto exchange FTX U.S. also submitted an application for a Bitcoin ETF, and in May, two more firms — Harvest, a Canadian ETF provider, and Sequant, a joint venture between Material Impact and SEB Inv IV — applied to launch a Bitcoin ETF.

"CME-traded XRP futures are now *live*,’' wrote ETF Store President Nate Geraci. "CFTC-regulated contracts on XRP. Spot XRP ETFs only a matter of time."

The former SEC Chair Gary Gensler had previously told issuers that one of the reasons it approved the spot bitcoin and ethereum ETFs was that it already had an existing regulated futures market in the U.S.

"There's an existing futures market, which is regulated by the CFTC, and that provides price discovery and price transparency in the underlying asset," Gensler said during a speech at an AERA conference in April.

However, despite the applications and Gensler's statements, no decision on a spot crypto ETF has yet been made. It is unclear when or if the SEC will approve any of the applications.