Quick Highlights:
- The XRP Futures were listed on the derivatives market of the CME Group
- CFTC has declared XRP as a commodity in an official publication
- Business of more than 1.5 million dollar on the 1st day of trading
- Ripple CEO describes it as one of the important institutional milestones
- After the launch, XRP price increased by 2.83 percent to reach the $2.36 price mark
- XRP makes a leap to the Big Leagues
XRP, one of the most popular altcoins, made a giant step towards mainstream finance, announcing the creation of the XRP Future contracts on the largest global derivatives exchange CME Group. It is a giant step in the direction of XRP and in the crypto scene as a whole.
The fact that CFTC has classified XRP as a commodity, as opposed to SEC which has previously classified it as security, also gives further legal weight to the XRP project and opens the gates to institutional trading.
Initial Trading Volume of First Day:
1.5M Dollars
The launch was not only symbolic as in the first day of its existence XRP Futures experienced more than 1.5 million in trading volume. With a respect of only four standard contracts traded, it was followed by 106 Micro XRP Futures contracts which drove in excess of $1 million of volume.
Ripple CEO Wishes the Milestone
Ripple company CEO Ripple, Brad Garlinghouse, tweeted about his excitement on X (known previously as Twitter), saying:
“The introduction of regulated XRP Futures on CME Group is a major institutional milestone on its way to XRP, and also very proud to comment that the First block trade on CME on its opening!”
The acknowledgment of CME, a well-established platform of traditional finance, can possibly affect the market trend of XRP in the same manner as both Bitcoin and Ethereum futures affected the course of their respective assets.
XRP Price has Responded But Will it Be Stable?
The price of XRP surged by 2.83 percent to the value of 2.36 after the CME debut. A 17 percent decline in total trading volume however suggests that the spike could prove short-lived at least in the short run. Nevertheless, it has given a good precedent to product institutional interest in altcoins.
Why it is important to the Crypto Market
Futures contracts are a ready tool to get exposure to crypto assets without buying it directly and therefore, easier for the institutions or more risk-averse investors to interact with digital assets. XRP is no longer just another coin, but now it is a part of the emerging bridge between traditional finance and the crypto innovation.
Watch this space as XRP finds its way to regulated markets to redefine the altcoin space.