Chicago-based cryptocurrency derivatives exchange Bitnomial is making waves with the upcoming launch of USD cash-settled futures contracts for XRP, the native token of Ripple.
This development, marked by the ticker symbol “XUS,” could be a significant step towards the highly anticipated arrival of an XRP exchange-traded fund (ETF) in the United States.
XRP Futures Take Center Stage
Bitnomial has officially notified the Commodity Futures Trading Commission (CFTC) of its plans to launch XUS futures contracts. Trading is expected to commence sometime after August 13th. These contracts will be executed on Bitnomial’s electronic platform and cleared through a CFTC-registered derivatives clearing organization, ensuring a secure and regulated trading environment.
Interestingly, Bitnomial highlights the existing liquidity of XRP as a factor mitigating the risk of market manipulation. Since XRP is already actively traded on numerous domestic and international markets, the exchange believes this established presence reduces the possibility of artificial price movements. Transparency is also a key focus, with Bitnomial committing to daily publication of both trading volumes and open interest levels for these futures contracts.
Building On Regulatory Approval
This launch comes on the heels of a significant victory for Bitnomial in December 2023. The CFTC approved their application to become a Derivatives Clearing Organization (DCO), paving the way for them to offer options and margined futures contracts like the upcoming XUS offering. While there were initial concerns about potential conflicts of interest, with one commissioner voting against the application, Bitnomial ultimately secured the green light, joining established players like CME, Cboe, and Bakkt in the regulated derivatives market.
Also Read: XRP Price Skyrockets 14% ā Liquidation Data And Whale Activity Fuel Bullish Outlook
A Precursor To A US XRP ETF?
The launch of XUS futures aligns perfectly with comments made by Ripple CEO Brad Garlinghouse in May 2024. Garlinghouse expressed his belief that an XRP-based ETF in the US was “inevitable.” However, as prominent ETF analyst Nate Geraci points out, the presence of regulated futures contracts is often seen as a prerequisite for an altcoin to be considered for an ETF.
In this light, Bitnomial’s XUS futures could be a crucial stepping stone towards the introduction of a US XRP ETF. By providing a regulated trading environment for XRP derivatives, Bitnomial may be helping to pave the way for a long-awaited addition to the American ETF landscape. Only time will tell if this is indeed the case, but one thing is certain: the launch of XUS futures marks a significant development for XRP and its potential future in the US market.
Disclaimer:Ā The information in this article is for general purposes only and does not constitute financial advice. The authorās views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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