- XRP futures on the CME Group just crossed the $1 billion mark, the fastest crypto asset to do so.
- Major firms like Bitwise and Franklin have filed for a spot XRP ETF following its legal clarity.
- Despite institutional bullishness, XRP’s price is down 9% in two weeks due to market-wide fears.
XRP futures on the CME Group just crossed the $1 billion mark in open interest, a historic milestone.
The CME Group announced its entire crypto futures suite surpassed $30 billion for the first time, with demand for XRP futures identified as a primary driver.
What Is the Big News About XRP Futures on the CME?
XRP set a new record as the fastest crypto futures product to ever cross the $1 billion threshold, achieving the feat in just over three months.
For comparison, CME’s other billion-dollar crypto futures include Bitcoin at over $16 billion, Ethereum at $10.5 billion, and Solana at $1 billion.
Why Does This $1 Billion CME Milestone Matter for XRP?
This milestone signals a significant maturation of the XRP market. According to the CME Group, the rapid growth of XRP futures beyond $1 billion is a clear sign of new, sophisticated capital entering the ecosystem.
“This is a huge sign of market maturity, with new capital entering the market,” the CME noted. This growth builds on a year of progress for XRP, which has seen renewed institutional interest following its legal clarity in the United States and deliberate technical developments on the XRPL by Ripple Labs.
Which Firms Are Filing for a Spot XRP ETF?
The XRP market has also recorded significant demand from institutional investors diversifying their crypto portfolios.
Last week, several fund managers – led by Canary, CoinShares, Franklin, 21Shares, WisdomTree, and Bitwise – filed for amended S-1 filings for spot XRP ETF with the agency following the official closure of the Ripple vs SEC case.
This rush to file follows the official closure of the Ripple vs. SEC case, with analysts now forecasting that an approval for a spot XRP ETF in the United States is imminent. This new product is expected to unlock even more liquidity for XRP, on top of its new Gemini Credit Card with XRP rewards.
According to aggregate data from CoinGecko, XRP has a market cap of about $176 billion and a fully diluted valuation of around $296 billion. Binance exchange recorded the highest XRP traded volume in the last 24 hours, on Tether’s USDT and Circle’s USDC.
If Institutions Are Bullish, Why Is the Price of XRP Dropping?
Despite the massive institutional inflows, the spot price of XRP has failed to capitalize. According to crypto oracles from CoinGecko, XRP price dropped over 9% in the last two weeks to trade at about $2.96 on Tuesday during the mid-London session.
The immediate cause, according to a report from CoinShares, is fear of Federal Reserve action, which prompted the largest cash outflows from crypto investment products since March.
XRP-specific investment products saw a net cash outflow of $25 million last week, a sign that some existing holders are taking profits. This shows the immediate challenge is can XRP hold $2.90 as price compression tightens.
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