CME Group is rolling out a cash-settled XRP futures ETF today, raising questions about institutional demand and spot ETF approval potential.
Today’s planned launch of the CME Group XRP futures is already drawing attention from investors and analysts. With XRP XRP $1.85 24h volatility: 1.1% Market cap: $112.33 B Vol. 24h: $2.01 B seeing growing interest from institutional buyers, many market participants believe this development could mark a new phase for the digital asset.
CME Group Introduces XRP Futures to Meet Rising Demand
According to reports, on May 19, the Chicago Mercantile Exchange (CME) Group is officially rolling out its new XRP futures, adding to its list of cryptocurrency offerings.
Coinspeaker noted earlier that the XRP futures will include two different contract sizes. First, Micro XRP covers 2,500 tokens, and the larger contract size covers 50,000 tokens.
According to the update, both contracts are based on the CME CF XRP-Dollar Reference Rate. These are cash-settled futures, meaning there will be no physical delivery of the XRP coins at the end of the contract. Based on market perception, this launch responds to growing institutional demand for digital assets like XRP.
According to Giovanni Vicioso, CME Group’s Global Head of Crypto Products, the rising interest from institutional and retail investors has made this move necessary. For traders and hedge funds, the XRP futures offer a regulated way to gain exposure to the coin without holding the actual asset.
Notably, the ETF could also improve market liquidity. By providing a standardized futures product on a trusted platform like CME, more market participants may be encouraged to acquire the Ripple-linked cryptocurrency.
Commenting on the development of X, Lawyer Bill Morgan noted that these cash-settled futures contracts could impact XRP institutional demand in multiple ways. His comment hints at how such products often open the door to more serious capital inflow from large players.
These are futures contracts. Do you know what that means for demand for XRP? Aren’t these cash-settled futures contracts? https://t.co/Ql7tg5HVco
— bill morgan (@Belisarius2020) May 19, 2025
Will XRP Futures Pave the Way for Spot ETF?
The timing of the XRP futures launch is also raising speculation about what could come next. Some experts believe this move may pave the way for a spot XRP ETF in the United States. While the Securities and Exchange Commission (SEC) has acknowledged several spot ETF applications, no approval has yet been granted.
Adding to the growing momentum, Brazil has recently launched its own XRP ETF, further supporting global interest in the coin. In the United States, however, the wait continues. Still, many believe that the CME Group’s decision to proceed with futures may pressure regulators. This could serve as a catalyst for them to respond to the increasing demand for clearer guidelines around crypto investment products.
As of this writing, CoinMarketCap data shows that XRP price was trading at $2.30, down 4.17% in the past 24 hours. Despite the drop, the fourth-largest digital asset has gained 12% over the last month.
Analysts suggest that broader market forces are responsible for the recent short-term dip in XRP. However, the introduction of the XRP futures could change that outlook. In addition, the resumption of trade talks between the United States and China may also help support a general longer-term market rally.
If institutional participation continues to grow, XRP may gain renewed momentum in the coming weeks.
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