XRP ETF Getting Closer with This New Major Development

Chicago cryptocurrency derivatives exchange Bitnomial is set to launch USD cash-settled futures contracts for the XRP cryptocurrency under the “XUS” ticker.

Bitnomial has notified the Commodity Futures Trading Commission (CFTC) that the new product is intended to trade after Aug. 13.

The execution of these futures will take place on the exchange’s electronic trading platform. The contracts will be cleared through a derivatives clearing organization that is registered with the CFTC.

The exchange has noted that XRP is already being traded on several domestic and foreign markets, which is why market manipulation is “unlikely.”

Bitnomial will publish trading volumes recorded by these futures as well as open interest levels on a daily basis.

In December, the CFTC greenlit Bitnomial’s application to register as a DCO, which made it possible for it to offer options and margined futures. There were some concerns about potential conflicts of interest, and one of the commissioners ended up voting against Bitnomial’s application.

Prior to that, it was allowed to list futures and options in 2020. It joined such names as CME, Cboe, and Bakkt.

In May, Ripple CEO Brad Garlinghuse stated that the launch of an XRP-based exchange-traded product was “inevitable” in the U.S.

However, as reported by U.Today, prominent ETF analyst Nate Geraci explained that regulated futures contracts are a must for a certain altcoin before it can experience some ETF buzz.

Hence, Bitnomial’s new product could be a major step toward the introduction of an XRP ETF in the US.

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