"Significant Development": Ripple CEO Discusses Consequences of CME's Major XRP Action
Headline: XRP Futures Launch by CME Could Boost Chances of XRP ETF Approval
Get the latest news on XRP and CME Group with U.TODAY on Google News! Brad Garlinghouse, Ripple's CEO, has hailed CME's XRP futures announcement as "incredibly important." He reckons it's a significant step towards expanding the XRP market.
As reported by U.Today, the XRP futures is scheduled for release on May 19, 2025.
Here's what this means for XRP and its potential ETF:
CME Group carries a considerable weight in the crypto futures market, controlling $13.14 billion out of $65 billion in open interest, according to CoinGlas. This makes it ahead of crypto-native entities like Binance and OKX.
Back in 2018, CME Group introduced Bitcoin futures, a move that coincided with the start of a bear market. In February 2021, they expanded their offerings with Ethereum (ETH) futures, boasting a current open interest of $1.32 billion.
The Securities and Exchange Commission (SEC) is planning to approve spot-based Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) in 2024. Previously, the lack of regulated futures was considered a significant hurdle to the approval of a spot XRP ETF. With XRP futures now on the horizon, the odds of an XRP ETF being approved by the new SEC administration in 2025 are looking high.
U.Today's reports suggest that XRP and Solana lead the way in ETF filings in the U.S.
If you're curious about what this means for the XRP market, here's a quick rundown:- Regulatory Precedent and Market Maturity: CME’s XRP futures provide a benchmark pricing mechanism and risk management tool for institutions. Historically, Bitcoin ETFs faced delays until SEC concerns about market manipulation were addressed through futures markets.- Market Demand and Infrastructure: The inclusion of micro and standard contracts caters to both retail and institutional traders, signaling demand for diversified exposure. CME's crypto derivatives activity saw a 141% year-over-year increase in Q1 2025, and the growing derivatives market often precedes ETF approvals.- Key Considerations: The SEC approval of a spot ETF would depend on custody solutions and market surveillance for XRP, particularly post-Ripple case. The performance of XRP futures will also play a role, with liquidity comparable to CME’s Bitcoin or Ether contracts potentially accelerating ETF issuers' filings.
In summary, the XRP futures launch reduces regulatory friction and validates institutional interest, making an XRP ETF more plausible in 2025–2026 if market conditions remain favorable.
- The upcoming XRP futures launch by CME Group might significantly boost the chances of an XRP Exchange-Traded Fund (ETF) approval, as CME carries a considerable weight in the crypto futures market.
- Brad Garlinghouse, Ripple's CEO, believes the XRP futures announcement is incredibly important, seeing it as a significant step towards expanding the XTR market.
- In 2018, CME Group introduced Bitcoin futures, a move that coincided with the start of a bear market, and then expanded their offerings with Ethereum (ETH) futures in February 2021.
- The Securities and Exchange Commission (SEC) is planning to approve spot-based Bitcoin (BTC) and Ethereum (ETH) ETFs in 2024, and the launch of XRP futures could potentially help resolve the previous hurdle of the lack of regulated futures for an XRP ETF.
- The performance of XRP futures will play a role in the SEC's decision to approve a spot XRP ETF, with liquidity comparable to CME’s Bitcoin or Ether contracts potentially accelerating ETF issuers' filings.
- With the launch of XRP futures by CME Group, the odds of an XRP ETF being approved by the new SEC administration in 2025 are looking high, especially if market conditions remain favorable, and institutional interest continues to grow.
