It’s going to be a big week for XRP with the futures launching on the CME today, and the ETF hype making headlines again. If all goes as planned, this could be a game-changer for XRP, drawing in institutional money and paving the way for spot XRP ETFs.
XRP ETF Approval Odds Increase
Polymarket traders have also raised their bets on an XRP ETF approval this year to 83%, despite the recent bearish sentiment. Bloomberg analysts have also raised the odds of approval to 85%, over rising institutional interest and a fair regulatory environment.
The Chicago Mercantile Exchange (CME) launching XRP futures contracts could be seen as a major step toward institutional adoption. Futures contracts allow traders to bet on an asset’s future price without owning it physically.
The launch of XRP futures would allow financial firms to create ETFs that track XRP prices, similar to the ProShares Bitcoin ETF, which tracks CME Bitcoin futures. But some are concerned that since no one’s actually holding XRP in futures contracts, the price is not going to move.
Nevertheless, today’s launch is expected to increase the market liquidity and attract institutions towards trading and hedging XRP in a regulated manner. Also, regulated futures are often a prerequisite for spot ETF approvals. The added visibility from a CME listing could further boost its market position.
New XRP ETF Shows Huge Inflows Despite Price Drop
The recently launched Teucrium 2x Long Daily XRP ETF (XXRP) has been showing steady growth, with over $106 million in assets since its April debut, data from ETF.com shows. Despite a recent dip in XRP prices, the fund added $30.4 million last week.
This shows growing interest in XRP ETFs, with XXRP outperforming similar products like the 2x Solana ETF (SOLT). Wall Street giant JP Morgan expects XRP and Solana ETFs to attract $15 billion in their first year, with XRP expected to capture the majority of these inflows.
The SEC is set to rule on the Franklin Templeton XRP ETF in June. However, a delay is likely, as it could be grouped with companies like Bitwise and VanEck ahead of their October deadline. Besides, Tuttle Capital’s XRP ETF, set to launch on May 21, could attract more institutional trading and increase spot demand on secondary markets.
