XRP Futures Are Coming to CME Group on May 19, Opening the Asset to Institutional Investors

XRP is making headlines again, and this time it's not just about a price rally or legal battle.

The crypto market has seen its fair share of interesting developments, especially within the institutional sphere. Among the leading cryptocurrencies, XRP has been a subject of significant attention, largely due to the ongoing litigation between the U.S. Securities and Exchange Commission (SEC) and Ripple.

However, another interesting development that could broaden institutional and retail investors' access to XRP is the launch of XRP futures.

CME Group to Launch XRP Futures

As the world’s biggest derivatives exchange, CME Group is a key player in facilitating financial instruments like futures, options, and other standardized contracts. The exchange, already offering Bitcoin futures and Ethereum futures, is now expanding its crypto offering with the introduction of XRP futures, pending relevant approvals.

These futures will be cash-settled and available in two contract sizes: 2,500 XRP and 50,000 XRP. Both futures will be based on the CME CF XRP-Dollar Reference Rate, which is assessed and published daily at 4:00 p.m. London time.

This expansion comes as institutions are increasingly seeking more diversified exposure within the crypto market. Moreover, CME's listing of XRP signals its confidence in the asset's long-term role within the financial landscape.

Robinhood to Offer XRP Futures to Retail Traders

In another interesting development, investing platform Robinhood confirmed that it will offer CME's XRP futures to its users. This move will allow retail traders to trade XRP futures in a regulated manner.

This aligns with Robinhood's broader goal of providing accessible financial products to a wider audience. It remains to be seen when these futures will be available on Robinhood's platform.

The inclusion of XRP on such a major trading platform speaks volumes about the growing demand for the token from retail investors.

Ripple CEO Reacts: “A Major Milestone”

Reacting to the announcement, Ripple CEO Brad Garlinghouse called it an “incredibly important and exciting step” for the XRP market. He highlighted how regulated financial instruments like futures can help to further build out mature market infrastructure and bring more liquidity to the XRP ecosystem.

Great to see another important step in opening up the #XRP market with more institutional products.

We've long said that we want to see more liquidity in the XRP ecosystem and this is a positive addition.

Futures are a regulated instrument sold on a basis that is centrally cleared by a third party.https://t.co.beM878o8Uv

— Brad Garlinghouse (@BradGarlinghouse) May 19, 2023

Indeed, while the SEC lawsuit against Ripple has been a major talking point in the crypto space, there has been a strong focus on institutional investors entering the crypto market.

Earlier this year, reports that major investment bank Goldman Sachs (NYSE:GS) was planning to offer its clients the chance to invest in a bitcoin product had sparked great interest.

Goldman’s move would open up the bank’s private wealth management division to invest in bitcoin on behalf of its clients, according to a report by the Wall Street Journal.

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