- XRP’s $1.10 call option sees a surge, driven by speculation of a potential U.S. XRP ETF approval.
- Over $2.4M in XRP options locked in as traders bet on a sharp price increase by August 28.
- Despite optimism, experts doubt XRP will hit $1.10 by month’s end, even with an ETF announcement.
The recent surge in XRP’s options market activity appears driven by growing speculation about a potential XRP exchange-traded fund (ETF). Traders are increasingly locking in positions on Deribit’s $1.10 call option for XRP, reflecting optimism that the cryptocurrency’s price might soar if an ETF is announced soon.
According to data from Amberdata, the $1.10 call option set to expire on August 28 has attracted an open interest of over 4.3 million contracts, valued at $2.44 million. This makes it the most popular option in Deribit’s nascent XRP options market, which has only been around for about five months. The significant interest in this option underscores traders’ belief that XRP could break through its current resistance levels, potentially fueled by the optimism surrounding a possible ETF.
Griffin Ardern, head of options trading and research at BloFin, believes that the increased activity in this particular option indicates a net long positioning among traders. He explained that if XRP can break its recent resistance level of $0.75, it might continue to rise and potentially surpass the $1.10 mark. Ardern also noted that the speculation around an XRP ETF in the U.S. is a key factor behind this surge in bullish bets.
Despite this optimism, some experts remain cautious. Martin Cheung, an options trader at Pulsar Trading Capital, expressed doubt that XRP could reach $1.10 by the end of August. He acknowledged the increased speculation about the next ETFs possibly being linked to XRP and SOL but stated that the timeline is tight for such a significant price jump. According to Cheung, even with a potential ETF announcement, XRP’s price might only see a 20% increase, which would fall short of the $1.10 target.
The speculation surrounding an XRP ETF has gained momentum following a recent court ruling involving Ripple Labs. Last week, U.S. District Court Judge Analisa Torres ruled against Ripple in a lawsuit over unregistered XRP sales, imposing a $125 million penalty for institutional sales. However, Ripple viewed the ruling as a victory, further fueling hopes that an XRP ETF might be approved in the U.S., similar to the approval of Bitcoin and Ethereum ETFs earlier this year.
This optimism is driving traders to bet on significant price increases, despite some skepticism about whether XRP can hit the $1.10 mark by the end of the month.
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