- The launch involves CME Group and Volatility Shares.
- XRP futures signal growing institutional interest.
- Market volatility expected post-launch.
Volatility Shares and CME Group have announced the launch of the first U.S. XRP futures on Nasdaq, marking May 19 as the start date.
The event signifies increased institutional interest in XRP as futures and ETFs launch publicly, predicting potential short-term asset volatility.
The debut of U.S. XRP futures on Nasdaq spearheaded by Volatility Shares and CME Group outlines an important shift in institutional demand for crypto derivatives.
This initiative sees Nasdaq listing its first XRP futures product, reflecting growing interest in innovative financial tools.
Volatility Shares introduced the first non-leveraged ETF tracking XRP futures under ticker XRPI, while CME Group is recognized for its existing crypto futures range, including BTC and ETH. Both seek to capitalize on institutional demand.
Following the launch, estimated price volatility is anticipated for XRP as institutional investors adjust portfolios. The potential market shift may influence cross-asset strategies, affecting BTC and ETH liquidity.
The introduction of these cash-settled contracts could redefine market perceptions, as reflected in initial XRP price projections of a drop from $2.35 to $1.89. These events may herald heightened institutional participation in the crypto market.
As Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, noted, “Interest in XRP and its underlying ledger (XRPL) has steadily increased as institutional and retail adoption for the network grows, and we are pleased to launch these new futures contracts to provide a capital-efficient toolset to support clients’ investment and hedging strategies.”
Historical data from past BTC and ETH futures suggest short-term volatility alongside improved price discovery mechanisms through regulated market channels. Analysts predict enhanced liquidity and market depth following this latest launch.
