CME Launches XRP Futures ETF, Ramping Up Institutional Demand for the Ripple Cryptocurrency

The CME XRP Futures ETF launch earlier this week proved to be successful, with trading volumes reaching nearly $6 million, outpacing giants like Ethereum.

The successful launch of the CME XRP futures ETF earlier this week has brought renewed interest to Ripple cryptocurrency. With nearly $6 million in trading volume, the ETF outpaced Ethereum futures in terms of liquidity.

This activity showcases the strong institutional demand for the token despite the recent delays in the SEC lawsuit settlement. In addition, the exchange-traded fund (ETF) managed by the Volatility Shares Trust will begin trading on the Nasdaq exchange today.

The fund, which invests indirectly in Ripple-linked token futures through its Cayman Islands subsidiary, is being launched after receiving approval from the U.S. Securities and Exchange Commission on May 21.

The Volatility Shares XRP Futures ETF, which will trade with the $XRPI ticker, will invest at least 80% of the net proceeds in different XRP-linked products.

Furthermore, the asset manager plans to launch a 2x futures ETF that promises double of the daily price appreciation in the Ripple cryptocurrency via the leverage exposure to XRP futures.

This development comes as the launch of a spot XRP ETF is being discussed. However, this will be subject to a complete settlement in the Ripple-SEC lawsuit.

Among the contenders aiming to launch spot XRP ETFs are Franklin Templeton, 21Shares, and Bitwise. On Polymarket, predictions estimate an 83% likelihood of a spot XRP ETF receiving approval this year.

“I simply don’t see this SEC not approving spot XRP ETF,” ETF Store president Nate Geraci said.

Stablecoin Bill To Have Positive Impact On RLUSD

The GENIUS Stablecoin Bill has moved to the U.S. Senate for a vote, and if passed, the act is expected to have a positive impact on U.S.-based stablecoins like Ripple’s RLUSD.

Should RLUSD capture 1% of USDT’s $150 billion market cap, its valuation could grow from the current $312 million to $1.5 billion by year’s end—a nearly fivefold increase.

If XRP mirrors this growth rate, its price could climb fivefold, reaching a target of $11.75 by the year’s end. However, if the stablecoin bill fails to pass through the U.S. Senate, other crypto laws could be in jeopardy, according to XRP lawyer John Deaton.

Deaton described the stablecoin regulation bill as non-controversial and aligned with national interests. But he warned that if lawmakers fail to pass this straightforward legislation, the chances of advancing more complex crypto-related bills are slim in the near future.

Among these bills are market structure reforms, the Lummis-Gillibrand proposal, or tax policies.

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