The Chercantil de Chicago (CME) stock market confirmed that XRP futures will be on May 19th.
After regulatory approval, operators can negotiate large size contracts (50,000 XRP) or micro (2,500 XRP).
As explained by Cryptonoticia, Future contracts They allow you to not directly have cryptocurrency, in this case XRP, at the future price of the asset on a specific date.
This is an agreement between the two parties. One promises to buy, the other promises to sell the asset at a certain price in the future. Once the contract expires, the parties will have the cash difference (liquidated in the contract) depending on whether the value of the asset is greater or less than the original agreement.
This type of instrument uses both Speculating about market movements (Betting on the price will rise or fall, as if covering the risk of a high volatility scenario).
In the case of XRP, futures allow traders or institutions to be exposed to assets without having to directly defend them.
CME Group XRP futures are resolved in cash and are based on the CME CF XRP dollar reference rate.
After the release date was known, Brad Garlinghouse, CEO of Ripple Labs, said through social networks:
Thus, XRP is incorporated into the portfolio of digital assets-linked equipment offered by the CME Group.
Additionally, a future deal for Solana (SOL) has recently been released.
At this time, news It had no major impact on the price of the fourth cryptocurrency More value in the market.
Currently, the XRP is priced at $2.21, 36% below its history’s highest (ATH) of $3.39.
Specifically, these launches show that. Institutional interest through XRP is growing This is the first time since the US Securities and Securities Commission (SEC) dismissed a lawsuit against Ripple.
As reported by Cryptonoticias, in December 2020, a regulatory body subsequently implemented by Gary Gensler filed a lawsuit claiming XRP was a value title (safety) Its sale was prohibited because it was not registered.
With legal disputes already settled, the roads are being raided to ensure that more financial products based on XRP continue to be released.
In addition to futures, it is important to remember that at the beginning of the month, funds cited in the Leveraged Futures Stock Market (ETF) were announced. The device is managed by Teucrium Investment Advisors and is named Teucrium twice as Daily XRP ETF (XXRP).
This ETF is intended to double the daily performance of XRP using 2x leverage.
Simply put, if the price of cryptocurrency rises by 5% in a day, the fund will try to advance 10%. On the contrary, if XRP drops by 5%, the ETF value drops by about 10%.
However, the majority of the community xrp long – approved of awaits etfalcaé (spot).
Unlike futures, cash ETFs are supported by underlying assets. This means that the fund must purchase and provide XRP. This could lead to increased demand, increased prices and further exposure to the facility to the market.
Canary capitals, 21 shares, Bitwise, Grayscale, Franklin Templeton and Coinshare are some of the companies that have filed requests with the SEC to list their respective ETFs. So far, the creature Paul Atkins has not given an answer to it at the moment.
