The XRP Ecosystem Is Experiencing a Significant Wave of Institutional Momentum

The XRP ecosystem is experiencing a significant wave of institutional momentum, with two major developments positioning both the token and Ripple, the company spearheading its ecosystem, in the spotlight.

The Chicago Mercantile Exchange (CME) has officially launched regulated XRP futures, marking a significant milestone in the cryptocurrency ecosystem.

The new products, unveiled on Monday, are part of CME Group's expanding cryptocurrency offerings. The futures contracts will be cash-settled and priced according to the CME CF XRP-Dollar Reference Rate, a benchmark established at 4:00 p.m. London time each day.

Two sizes of XRP futures will be available:

Both instruments are designed for institutional and professional traders, enabling them to hedge risk or take directional positions on XRP's price without holding the underlying asset. This distinguishes them from spot ETFs, which directly track the token's value.

“Interest in XRP has steadily increased among our institutional clients, and more broadly, demand for regulated derivatives products across a wider range of tokens is growing,” said Giovanni Vicioso, CME’s Global Head of Cryptocurrency Products.

CME's move may also pave the way for a spot XRP ETF in the U.S., especially with SEC chair Gary Gensler's term nearing its end and the possibility of a new administration rolling in with a more favorable stance.

A recent report by Unchained Capital pointed towards a potential shift in the SEC's stance, highlighting that the agency is currently unable to approve an XRP ETF due to a lack of a "deep, liquid, and verifiable market in the U.S.,' which is a requirement for any ETF approval.

However, with CME launching a regulated XRP futures contract and its associated price reference rate, this requirement might now be met, paving the way for ETF issuers to apply for a spot XRP ETF.

Issuers such as Franklin Templeton, 21Shares, and Bitwise are already positioning themselves for this opportunity.

Earlier this year, the Issuer Applied for an ETF to Track the Cryptocurrency

Announced in March, Franklin Templeton is planning to apply for an ETF that will track the price of XRP, pending approval from the Securities and Exchange Commission (SEC). This move follows a series of applications from other companies for Bitcoin and Ethereum ETFs.

Earlier this year, the Issuer Applied for an ETF to Track the Cryptocurrency

Announced in March, Franklin Templeton is planning to apply for an ETF that will be tracking the price of XRP, pending approval from the Securities and Exchange Commission (SEC). This move follows a series of applications from other companies for Bitcoin and Ethereum ETFs.

"We are working on a filing for an XRP ETF, and we're waiting for the best time to submit the application," said a spokesperson for Franklin Templeton. "We're also in conversations with the SEC about the application process."

The potential launch of an XRP ETF is a significant development in the cryptocurrency industry. It could open up new avenues for institutional investors to gain exposure to the digital asset class.

"We think there's a place for both Bitcoin and XRP in a diversified portfolio of digital assets," said the Franklin Templeton spokesperson. "We're committed to providing our clients with innovative investment solutions, and we're excited about the possibilities that lie ahead in the cryptocurrency space."

As the cryptocurrency market continues to grow and evolve, we can expect to see even more interesting and groundbreaking developments in the years to come.

The DEFA will be holding an open comment period until August 18 for feedback on the proposed amendments to the rules.

"We invite interested parties to submit their comments and help us shape the future of the digital asset industry in a safe and responsible manner," said DEFA officials in a statement.

The proposed amendments would also create a new category of "digital asset service providers," which would be subject to less stringent regulation than traditional financial institutions. This category would include companies that provide cryptocurrency exchange services, custodial services, and mining services.

The DEFA said the changes are necessary to keep pace with the rapid innovation in the digital asset space and to ensure that the industry is regulated in a way that balances innovation with investor protection.

"The digital asset industry is still in its early stages of development, and we need to be mindful of not stifling innovation with overly burdensome regulation," said DEFA Director Greg Gerven. "But at the same time, we have a responsibility to protect investors from fraud and abuse."

The proposed amendments have been met with mixed reactions from industry stakeholders. Some groups have praised the DEFA for trying to keep pace with the rapidly changing industry, while others have argued that the amendments do not go far enough.

"We are pleased to see that the DEFA is proposing to amend its rules to take into account the unique characteristics of the digital asset industry," said Paul Atkins, the chair of the SEC. "These amendments are a step in the right direction, but more needs to be done to ensure that the digital asset markets are regulated in a way that balances innovation with investor protection."

Atkins, a known crypto ally, joined the SEC in June after being appointed by President Trump in 2017 to serve as a