The Chicago Mercantile Exchange (CME) made waves on Monday, May 19, 2025, as it launched the first regulated XRP futures in the United States. This pivotal moment marks a noteworthy expansion in the cryptocurrency derivatives market, offering traders two distinct contract sizes—2,500 XRP and 50,000 XRP—both of which will be cash-settled. These contracts draw upon the SME CF XRP-Dollar Reference Rate, delivering daily price tracking at 4:00 p.m. London time.
Setting the Stage: XRP Joins CME’s Crypto Roster
With this addition, XRP futures join the ranks of other heavyweight cryptocurrencies like Bitcoin, Ethereum, and Solana already available on CME’s platform. Nate Geraci, President of the ETF Store, voiced optimism on social media platform X, stating, “CME-traded XRP futures are now live. CFTC-regulated contracts on XRP. Spot XRP ETFs only a matter of time.” His comments highlight the anticipation building around the potential approval of a spot XRP exchange-traded fund (ETF), a decision currently under the microscope of the Securities and Exchange Commission (SEC).
The debut of XRP futures is not just a standalone event; it’s potentially a harbinger of broader developments in the regulatory landscape. The SEC’s previous approval of spot Bitcoin and Ethereum ETFs hinged on the existence of regulated futures markets for these assets. Many in the industry are now speculating that XRP could follow a similar trajectory. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
A Rocky Start or Just Growing Pains?
Despite the fanfare, the initial trading day saw XRP’s price dip by 3.45% over the past 24 hours, underscoring the volatility that often accompanies new market offerings. This echoes sentiment from the launch of CME’s Solana futures back in March, which reported a modest $12.3 million in notional daily volume on its first day, and closed with $7.8 million in open interest—figures that paled in comparison to the launch numbers of Ether and Bitcoin futures. As explored in our recent coverage of Solana futures open interest nearing all-time high, the market dynamics for new futures can be unpredictable.
Industry analysts are keenly observing how these figures will evolve. Some argue that the introduction of regulated futures could lend credibility and stability to XRP’s market, potentially paving the way for increased institutional involvement. However, others caution that regulatory hurdles remain a concern, particularly with the SEC’s ongoing scrutiny.
The Bigger Picture: Regulatory Hurdles and Market Dynamics
The introduction of XRP futures is unfolding in a landscape rich with both promise and uncertainty. As the crypto market matures, regulatory clarity becomes crucial—especially with several U.S. issuers awaiting SEC decisions on spot XRP ETFs. Former SEC Chair Gary Gensler had previously highlighted the importance of a regulated futures market as a foundation for approving spot ETFs, a sentiment echoed by current market participants.
Yet, the path forward is far from clear-cut. While the regulated nature of these new futures contracts is a step toward legitimacy, questions linger about how quickly or smoothly this will translate into an approved spot ETF. Market participants are also wary of the broader economic conditions, which could influence trading volumes and investor sentiment in the coming months.
Looking Ahead: What Lies on the Horizon?
As we move further into 2025, all eyes will be on how XRP futures perform and whether they can capture the attention of institutional investors the way their Bitcoin and Ethereum counterparts have. The potential approval of a spot XRP ETF looms large, but it’s a complex dance between market forces and regulatory bodies.
In the meantime, traders and analysts alike will be monitoring the data closely, looking for signs of sustained growth or potential pitfalls. The introduction of CME’s XRP futures could indeed be a watershed moment for the cryptocurrency, but like any bold move, it carries risks as well as rewards. The journey ahead promises to be as unpredictable as the crypto market itself, but one thing is certain—it’s a space that will continue to evolve, challenging both expectations and norms.
Source
This article is based on: XRP Futures Start Trading on CME
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
