In little-noticed news, Bitnomial Exchange LLC self- certified a new XRP Futures Contract with the U.S. Commodity Futures Trading Commission (CFTC) on August 9. The XRP Futures Contract, denominated in U.S. dollars (XUS), was scheduled to begin trading on August 13, 2024. However, the official website did not show any XRP Futures Contract at the time of writing. Notably, this certification could pave the way for the approval of a physical exchange-traded fund (ETF) in the United States.
The XUS contract will be a physically settled Futures Contract involving 100,000 units of XRP. In the official filing, Bitnomial outlined the structure and compliance measures associated with these Futures Contract , emphasizing adherence to several core principles set forth by the CFTC. These principles address important areas such as market manipulation, trading practices, market disruption, and financial integrity.
In its compliance document, Bitnomial states:
“Bitnomial has determined that the rules regarding the listing of the XUS contract comply with the requirements of the Commodity Exchange Act as well as the rules and regulations issued by the Commission.”
This compliance is crucial to addressing long-standing concerns about the stability and reliability of the cryptocurrency market.
Furthermore, Bitnomial has received support from market participants and clearing members. The filing states:
“The Exchange has spoken with Clearing Members and market participants who support the decision to launch the XRP US Dollar Futures contract. The Exchange is not aware of any substantive opposition to the Contract.”
Bitnomial’s move is all the more significant given the potential impact on the U.S. Securities and Exchange Commission’s (SEC) stance on ETFs. The SEC has long been hesitant to approve spot cryptocurrency ETFs, especially Bitcoin ETFs , largely due to concerns about market manipulation and fraud in the underlying markets.
One key condition the SEC has required for ETF approval is the presence of a “significant futures market.” This term refers to a futures market that is large enough and regulated enough to provide adequate oversight and protection against potential fraud and manipulation in the spot market.
The SEC’s stance changed after the court’s ruling in the Grayscale case, which criticized the SEC for failing to adequately explain why it treats spot ETFs and futures ETFs differently when both are based on the same underlying asset. As a result, experts argue that the SEC may soon have to approve a spot cryptocurrency ETF, when Futures Contract -based funds have already been approved.
As such, the community has responded enthusiastically to the news, seeing it as a significant step towards the approval of a spot ETF in the United States. Chad Steingraber, an active member of the community, commented :
“Futures Contract are the first steps towards an XRP ETF. It’s inevitable.”
Yassin Mobarak, founder of Dizer Capital, expressed a similar sentiment, calling the development “a prelude to a spot XRP ETF.”
Good Morning Crypto added :
“Big Step Towards Launching XRP ETF in the US”.
Renowned ETF expert Nate Geraci, host of the ETF Prime podcast and co-founder of the ETF Institute, posted a Trump meme , saying:
“I am constantly visiting the SEC website waiting for the XRP ETF filing.”
At the time of writing, XRP is trading at $0.57.
XRP price chart trying to breakout | Source: Tradingview
You can XEM the XRP price here.
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Dinh Dinh
According to Bitcoinist
