XRP Futures Contracts to Launch on CME Group's Market Starting May 18

The digital currency space is witnessing another key development as CME Group prepares to introduce XRP futures contracts starting May 18. This new offering

CME Group is set to introduce XRP futures contracts on May 19, marking another milestone in the digital currency space.

Micro and Large XRP Contracts To Launch at CME

Expanding its cryptocurrency derivatives suite, CME Group will be listing two types of XRP futures contracts, offering both micro and large sizes. The micro futures contracts will consist of 2,500 XRP, while the larger futures contracts will be valued at 50,000 XRP.

CME Group will be offering its cash-settled futures contracts for XRP, similar to its existing Bitcoin and Ether futures, and Solana (SOL) futures offerings.

Discussing this development, Global Head of Cryptocurrency Products at CME Group, Giovanni Vicioso, highlighted the role of blockchain technology in facilitating traditional financial institutions to create regulated frameworks for engaging with digital assets.

“As the cryptocurrency market continues to grow, there is increasing demand for regulated instruments to manage risk across a broader range of crypto assets,” Vicioso stated.

Highlighting the significant progress made by CME Group in its crypto market, Vicioso added, “We are pleased to expand our market-leading portfolio of cryptocurrency derivatives with the launch of XRP futures.

At the same time, we are seeing exceptionally strong trading activity in our crypto markets. In Q1 of 2024, our crypto products had an average daily contract volume of 198,000 contracts, a 141% increase year-over-year, and an notional value of $11.3 billion. At the end of March, our crypto products had an outstanding notional value of $21.8 billion and an open interest of 251,000 contracts.”

Trading Platform of Robinhood To Offer Access to CME’s XRP Futures

In a move to provide retail traders with access to crypto futures, the trading platform of Robinhood (HOOD) will be integrating CME Group’s XRP futures into its offerings.

Announcing this initiative, JB Mackenzie, who spearheads futures trading democratization initiatives at Robinhood, stated that the integration of CME Group’s XRP futures is a testament to the platform’s commitment to expanding opportunities for its users.

“We are excited to announce that we will be adding CME Group’s XRP futures to our futures offering. At Robinhood, we are constantly working to expand our offerings and provide our customers with access to new and innovative investment products. We are also committed to making futures trading more accessible to a wider range of investors.”

He added, “Earlier this year, we launched our futures trading product, and we have been thrilled with the response from our customers. Since launching futures trading earlier this year, we've seen strong demand from our customers for crypto futures specifically. In response to this demand, we are able to now add the micro futures contracts to our offering.

After launching with about 15 futures contracts earlier this year, we will have up to 40 futures contracts available for trading on the Robinhood platform in total. When it launches, it will be accessible to our customers in the U.S. on the native Robinhood mobile application with the same great speed, performance and user experience that our customers are used to.”

Teucrium 2x Daily Long Xrp Etf (XXRP) Shows Strong Start

In other developments, the Teucrium 2x Daily Long XRP ETF (XXRP) has shown strong interest in its first days of trading. Managed by CEO Sal Gilbertie at Teucrium, the fund is said to have collected $35 million in assets during its first trading period.

It is noteworthy that the Teucrium 2x Daily Long XRP ETF (XXRP) is the first and only 2x daily leveraged ETF to invest in major cryptocurrencies.

The move by Teucrium to launch a 2x daily Long XRP ETF comes as part of a broader effort by financial institutions to create regulated products and services within the cryptocurrency market.

Earlier this year, Coinbase announced plans to launch an institutional-grade futures platform later in 2024, which will offer BTC, ETH, and SOL futures contracts to select institutional clients in the United States. The U.S. Commodity Futures Trading Commission (CFTC) will provide oversight for the futures contracts offered by Coinbase Derivatives.

Announced on April 21, the service will be available to select institutional clients in the U.S. and will be powered by Adaptive, Coinbase’s institutional digital assets connectivity platform.

As major exchanges and platforms continue to forge new initiatives in the digital asset landscape, there is a clear transition underway as major digital tokens like XRP are gaining more mainstream adoption.