Bitnomial to Launch XRP Future Contracts; Is XRP ETF Next?

In a major development that could transform the XRP market, a leading exchange is set to launch futures contracts for the cryptocurrency, potentially enhancing liquidity and attracting significant attention. This move raises questions about XRP’s price trajectory, the possibility of an ETF, and other market implications.

Bitnomial Launches XRP/USD Futures

Bitnomial Crypto Exchange has announced its plan to introduce XRP/USD futures contracts, known as XUS, to the U.S. Commodity Futures Trading Commission (CFTC). Trading for these contracts is scheduled to begin today. Each contract will be physically settled, based on margin, and represent 100,000 units of XRP.

The exchange noted that XRP is already actively traded on various domestic and international platforms, which reduces the likelihood of market manipulation.

Regulatory Steps and Market Impact

Bitnomial has self-certified the new contracts with the CFTC, ensuring they comply with all relevant regulations without needing prior approval. This move is expected to increase XRP's market liquidity and offer traders a new method for speculating on its price, potentially attracting institutional investors.

Speculation on an XRP ETF

The introduction of futures contracts has fueled speculation about the potential launch of an XRP exchange-traded fund (ETF). Market observers suggest that an ETF could be feasible, especially given recent legal clarifications that XRP is not classified as a security. ETF analyst Nate Geraci has emphasized that regulated futures contracts are a critical precursor to any ETF discussions.

Recent Milestones and Legal Developments

XRP recently surpassed a significant milestone, with the total number of XRP tokens held in accounts exceeding 60 billion, valued at over $34 billion at current prices. This total includes all tokens in wallets, both in circulation and otherwise.

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has significantly impacted the market. The resolution of this case has boosted confidence in the possibility of a spot ETF, although an appeal by the SEC remains a risk. Should an appeal occur, XRP might revisit its July 5, 2024, low of $0.3814. Conversely, if no appeal is filed, XRP could rise to its July 13, 2023, high of $0.9327. On August 13, XRP saw a 1.55% gain, closing at $0.5777 after a 2.91% increase the previous day. Currently, XRP is trading around $0.58.

The market is abuzz with speculation about whether XRP is on the brink of an ETF breakthrough. Share your thoughts on whether XRP is ready for this pivotal moment.

Source - https://coinpedia.org/news/dont-miss-out-grayscales-new-makerdao-trust-promises-big-gains-for-crypto-investors/