This Move Makes XRP the First U.S.-Regulated Altcoin

This move makes XRP the first U.S.-regulated altcoin, after Bitcoin and Ethereum—to be traded on the CME derivatives platform.

The cryptocurrency market continues to be a hot topic of conversation, especially with the recent launch of CME-traded XRP futures. This move makes XRP the first U.S.-regulated altcoin, after Bitcoin and Ethereum—to be traded on the CME derivatives platform. The contracts are cash-settled and priced off a daily reference rate, with sizes of 2,500 and 50,000 XRP.

The launch was confirmed by ETF Store President Nate Geraci, who stated, “CME-traded XRP futures are now live. CFTC-regulated contracts on XRP. Spot XRP ETFs [are] only a matter of time.” This follows a previous report by CC XV, highlighting the significance of the moment.

The launch places XRP alongside major cryptocurrencies already available on CME—Bitcoin, Ethereum, and Solana—cementing its role in the institutional crypto market.

This development comes as crypto hedge funds have reportedly pulled out of the market in droves, and despite a recent surge in bitcoin futures, the overall volume of bitcoin futures trading has seen a decline.

The launch of CME-traded XRP futures also comes amid a surge in new applications for bitcoin and ether ETFs from various asset management firms. Notably, Cathie Wood’s ARK Invest has applied for an ETF that would directly track the price of bitcoin, a move that could have far-reaching implications for the crypto market.

However, the SEC’s actions on these applications remain uncertain, especially given its rejection of several bitcoin and ether ETF applications in the past.

While the futures market is heating up, on-chain signals depict a more complex picture of XRP valuation and market sentiment. Over the past week, 10 million to 100 million XRP holders accumulated assets with over 12.1% of the circulating supply now in their hands. That’s an increase from 11.58% in April that depicts enhanced whale faith in XRP’s long-term prospects.

This coincides with a massive purchase by a whale of nearly 250 million XRP, worth over $500 million, without triggering any noticeable price movement, raising questions about market dynamics. Stellar Expert, a crypto analyst, highlighted this activity on X (formerly Twitter).

At the same time, XRP exchange reserves increased from 2.7 billion to 2.9 billion XRP on Binance, according to CryptoQuant. This is typically an indication of growing selling pressure, as traders usually send money to exchanges when they intend to sell their assets.

However, the overall sentiment in the market is cautiously upbeat. Its present trading volume is $4.63 billion, while its open interest in futures has climbed to $4.94 billion, indicative of increasing market participation. This could add more impetus to the momentum and push XRP towards the key psychological level of $3.00.

Technically, XRP is both showing its capacity for a bull run as well as short-term vulnerability. With its current trading value of approximately $2.44, the Ripple currency price has formed a higher low trend supported by optimistic moving averages. Indicators like the Relative Strength Index (RSI) show light bullish bias but yet remain below the overbought threshold.

Of interest, the XRP/BTC pair has formed a golden cross on the weekly chart for the first time since 2017, as the 50-week moving average has crossed over the 200-week average. Historically, this type of formation preceded a 1,000% climb that pushed XRP to its all-time high of $3.40 in January of 2018.

Yet, there are still some caution signs. A double top at the level of about $2.65 and recent failure from a rising wedge setup signal a possible short-term correction to $1.94. XRP is also near an important level of support at $2.00–$2.04, where some about $50 million of leveraged long positions are vulnerable to liquidation with further decline in price.

According to Glassnode's Net Unrealized Profit/Loss (NUPL) metric, XRP investors appear to have entered the "denial" stage—a stage typically encountered before price corrections. This observation is based on an analysis of the latest data from the cryptocurrency market.

The visualization showcases the transitions in investor sentiment and market behavior during bull and bear markets. As the market price deviates significantly from the realized price (the price at which coins last changed hands, used to calculate the total market cap), NUPL moves further away from zero, indicating either extreme optimism or pessimism among investors.

The chart highlights that during previous bull market cycles, when the market experienced substantial corrections, such as in 20