XRP may soon bring a transformative shift to the cryptocurrency landscape. With Bitnomial’s introduction of USD cash-settled futures contracts, designated with the ticker “XUS” there can be some shift.
Recently notifying the Commodity Futures Trading Commission (CFTC). This move by the Chicago-based derivatives exchange could pave the way for the long-anticipated XRP exchange-traded fund (ETF) in the U.S.
Bitnomial’s Strategic XRP Futures Launch
Bitnomial, a CFTC-approved Derivatives Clearing Organization, plans to offer these futures on its electronic trading platform. It’ll offer US investors new trading techniques.
This comes after the regulatory approval in December. The approval allowed the platform to extend its services to include options and margined futures. With the addition of XRP to existing financial products, Bitnomial aims to achieve market presence and institutional acceptance.
Ripple’s Expanding Influence in Web3
At the same time, Ripple is rapidly expanding on the Web3 front through a collaboration with the SBI Digital Community. This alliance is looking to harness the XRP Ledger (XRPL) in the creation of Web3 applications. It’ll aim to focus on the creation of non-fungible tokens (NFTs).
SBI Digital Community intends to create and sell NFTs as it takes advantage of its strong infrastructure and large audience. They aim to do it smoothly via xrp.cafe, one of the leading NFT marketplaces on the XRPL. Having minted more than 17,590 NFTs and with a 30-day sales volume of about $106,567.09, xrp.cafe is an instrumental part of the XRPL’s emerging digital asset ecosystem.
Stablecoin Initiatives on XRPL
Additionally, Ripple has recently begun testing its stablecoin – Ripple USD (RLUSD) on the Ethereum mainnet and XRP Ledger (XRPL). This testing phase is a part of Ripple’s long-term plan to enter the stablecoin market where RLUSD and XRP will be used for cross-border payments.
Ripple USD aims to be collateralized by short-term US Treasuries, dollar deposits, and cash equivalents, which are very secure and stable. In addition, the company intends to carry out monthly attestations which will be audited by a third-party firm. This move intends to enhance accountability, transparency, and compliance with the law.
XRP Futures Introduction Implications
The creation of futures contracts is frequently followed by the introduction of ETFs linked to those particular assets. In this case, Bitnomial’s futures could be building the foundation of an XRP ETF. According to industry experts, the endorsement of crypto futures by a regulatory body is a major step towards the launch of corresponding ETFs.
ETF analyst Nate Geraci shed light on this process in a recent podcast while responding to the Solana ETFs question. Geraci said, “So number one, we either need regulated futures contracts to be trading. So, in this case, we would need CME-traded Solana futures…Then we would probably need to see Solana Futures ETFs, and then you’d get the spot ETF.”
As a result, the new futures product from Bitnomial may increase the possibility of the XRP getting approval for an ETF, providing investors with a less risky means of investing in XRP. These actions by Ripple and Bitnomial are paving the way for more acceptance and inclusion of XRP in financial markets facilitating the introduction of an XRP ETF.
Source: https://www.thecoinrepublic.com/2024/08/14/will-bitnomials-xrp-futures-launch-lead-to-ripples-u-s-etf-debut/