XRP price prediction: Will the new CME futures contract push the token to new highs?

The price of XRP/USD rose 1.55% on Wednesday, continuing a strong month for the token as institutional interest, favorable legal momentum, and a growing derivatives market drive renewed confidence in Ripple's native asset.

Here's what's moving XRP in the mid-term.

What Happened: XRP was trading up 18.3% over the past month. It reached highs of $2.13 within the last week as CME Group’s upcoming launch of XRP futures drew interest from institutions and the U.S. Securities and Exchange Commission moved closer to settling its lawsuit with Ripple.

CME Group will begin offering XRP futures on May 19, bringing the token into the same arena as Bitcoin BTC/USD and Ethereum ETH/USD. Both cryptocurrencies saw significant price appreciation after their respective futures products debuted on CME.

In anticipation of the futures launch and the potential for increased institutional participation, XRP daily transactions have surged to over $5.3 billion, while active wallet addresses rose more than 600% in the last week.

At a broader level, XRP-based exchange-traded products (ETPs) are gaining traction. Teucrium's new 2x Long Daily XRP ETF, launched in late March, has already clocked $5 million in trading volume, placing it within the top 5% of ETF launches.

"It's no secret that we're seeing a shift in the market with more and more institutions engaging with cryptocurrencies, and it's an exciting time for the industry to come together and foster this collective growth," said Brian Ackerson, Head of Structured Products at CME Group.

"At CME Group, we're proud to be facilitating this evolution by expanding our offering of crypto futures and options to include XRP, providing our diverse client base with greater opportunities to manage their risk and capitalize on the emerging digital asset landscape."

Related Link: Best Cryptocurrency ETPs and ETNs To Buy

What to Know: The regulator dropped its case against two top executives and a pending settlement agreement now awaits final approval from the SEC Commission and the relevant court. The revised penalty has been reduced to $50 million—down from $125 million—and Ripple has agreed to withdraw its cross-appeal.

If approved, the resolution would formally end a multi-year regulatory overhang that began with the SEC's lawsuit in December 2020.

"Transparency is a core value at Ripple, and we're committed to providing regular updates on our progress and activities, especially as we navigate this final stage of the SEC case," said Garlinghouse in the final installment of Ripple's XRP Markets Report.

While the reports will no longer be published quarterly, Ripple said it will continue to disclose its holdings and relevant updates on its website.

With improved regulatory clarity, the launch of CME derivatives, and a surge in institutional investment interest, short- to mid-term forecasts have shifted toward the $5–$10 range—particularly if CME's XRP futures mimic the bullish inflows seen for Bitcoin in 2017.

At a broader level, XRP-based exchange-traded products (ETPs) are gaining traction. Teucrium's new 2x Long Daily XRP ETF, launched in late March, has already clocked $5 million in trading volume, placing it within the top 5% of ETF launches.

This compares favorably to the average new ETF launch, which typically sees around $1.5 million in volume over the first full day of trading.

Moreover, several firms are reportedly preparing to launch spot Bitcoin ETFs later this year, specifically if the U.S. Supreme Court declines to hear the SEC's appeal on its approval of futures ETFs.

Among these firms are WisdomTree (NYSE:WTR), Invesco (NYSE:IVZ), and Global X, each of which is aiming to launch a spot Bitcoin ETF.

However, reports also indicate that firms are preparing to launch the first-ever U.S. XRP ETFs later this year.

Among the firms readying their applications are crypto exchange FTX and asset management firm ARK Invest, both of which are recognized for their endeavors in the ETF space.

FTX is reportedly planning to launch a spot Bitcoin ETF and an XRP ETF through its FTX U.S. subsidiary.

Meanwhile, ARK Invest, known for its flagship ARK Innovation ETF (ARKK), is preparing to launch an XRP ETF through a joint venture with investing firm The FinTech Collective.

Key Dates To Watch: Investors should also watch for macroeconomic risks, including Federal Reserve policy, U.S.–China trade tensions, and broader crypto sentiment, which will influence price action in the coming weeks.