As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, I find the recent developments surrounding XRP extremely intriguing. The decision by Bitnomial to file for XRP futures trading with the CFTC marks a significant step forward in legitimizing this cryptocurrency within the U.S. market.
From my perspective as an analyst, following the conclusion of the Ripple vs SEC lawsuit, which resulted in a $125 million penalty for Ripple, crypto exchanges are demonstrating assertiveness. For instance, Bitnomial has taken a significant stride by filing for XRP futures trading with the U.S. Commodities and Futures Trading Commission (CFTC) on Tuesday, August 13th.
According to recent updates, Binomial is planning to launch futures contracts for XRP/USD. These contracts will be backed by margin and will represent the value of 100,000 XRP units. This move has sparked discussions about the possibility of a future spot XRP Exchange-Traded Fund (ETF).
In the process of self-verification, Bitnomial has checked and confirmed that the fresh contracts adhere to all relevant laws and guidelines. The introduction of XRP futures will further increase its market reach and trading fluidity. By offering this new futures option for XRP, crypto exchange Bitnomial gives traders another opportunity to predict XRP’s price movements, potentially drawing more institutional participation.
Discussions about the legal status of Ripple’s XRP have sparked talk among market analysts regarding the possibility of a spot Exchange Traded Fund (ETF) being introduced. For example, Nate Geraci, President of The ETF Store, has voiced his expectations on social platforms, inquiring as to when such an ETF might be made available.
1. His remarks echo the optimistic sentiment commonly found within the cryptocurrency community. He further stated that the outcome of the upcoming election could significantly influence which party governs the Securities and Exchange Commission (SEC), potentially affecting Exchange-Traded Funds (ETFs).
Why XRP Futures Makes Sense
Lawyer Bill Morgan from Ripple shared crucial details about Bitnomial’s latest application to the U.S. Commodity Futures Trading Commission (CFTC) for listing XRP/USD futures trading. The application indicates that the typical monthly trade volume for XRP in cash markets surpasses 85 billion dollars.
Conversely, Bitnomial suggests a cap for spot-month positions at 300 million XRP, equivalent to 3,000 futures contracts. This limit amounts to only a tiny fraction (0.049%) of the total available supply for delivery.
300 million XRP, similar to Ripple’s monthly escrow disbursement, represents only 0.05% of the total supply. This contradicts claims suggesting frequent XRP sell-offs. Additionally, it’s worth noting that around 61% of all XRP is currently in circulation. Furthermore, Binomial, with its US clearinghouse license, strengthens its market presence.
Delving into the details revealed by Bitnomial’s application to the Commodity Futures Trading Commission for approval of their XRP-USD futures listing is quite intriguing.
On average the monthly XRP trade is over 85 billion on XRP cash markets.
Bitnomial proposesa spot month position limit…
— bill morgan (@Belisarius2020) August 14, 2024
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2024-08-14 12:42