The cryptocurrency market has witnessed a surge in XRP trading activity, with monthly volumes exceeding 85 billion tokens on cash markets. This significant liquidity underscores the growing interest in XRP and its potential for future growth. The recent announcement by Bitnomial to launch XRP/USD futures contracts has further fueled excitement within the cryptocurrency community, as it is seen as a pivotal step towards the potential launch of a spot XRP exchange-traded fund (ETF) in the United States.
Australian-based crypto attorney Bill Morgan has shed light on key details from Bitnomial’s submission to the Commodity Futures Trading Commission (CFTC). One of the most notable revelations is the substantial monthly trading volume of XRP, which exceeds 85 billion tokens. This figure is corroborated by data from CoinMarketCap, indicating an average daily trading volume of $1.6 billion for XRP in recent weeks.
XRP’s trading activity is characterized by periods of heightened volatility, often coinciding with significant price movements. For example, following the final ruling in the SEC v. Ripple case, XRP’s daily trading volume surged to over $5 billion. Similarly, last July, following Judge Analisa Torres’s declaration that XRP is not a security, the cryptocurrency experienced a notable increase in trading volume, reaching $10.4 billion.
Also Read: XRP Price Prediction: XRP Poised for Massive 60,000% Rally Surge to $2.3 or Higher
Attorney Morgan also drew attention to Bitnomial’s proposed spot month position limit of 300 million XRP. This limit, which equates to approximately 0.049% of XRP’s total supply, has raised discussions among market participants due to its close correlation with Ripple’s monthly escrow releases.
The introduction of XRP/USD futures contracts by Bitnomial is a strategic move towards facilitating the launch of a spot XRP ETF. Futures contracts serve as a valuable precursor to spot ETFs by providing a regulated framework and pricing mechanism that can be utilized by potential ETF issuers. By establishing a robust futures market for XRP, Bitnomial is contributing to creating a more mature and investor-friendly ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s 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.
Crypto and blockchain enthusiast.
