XRP ETF: CME Group Adds XRP Reference Rate, ETF on Horizon?

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As a researcher with a background in finance and experience in following the crypto market, I’m excited about CME Group’s announcement of new reference rates and real-time indices for Ripple’s XRP and Internet Computer (ICP). This expansion of their cryptocurrency offerings is a significant step forward for the mainstream adoption of digital assets.

The Chicago Mercantile Exchange (CME) has made an announcement: they’re introducing new reference rates and real-time indices for Ripple‘s XRP and Internet Computer (ICP). This action by the prominent derivatives marketplace CME Group has fueled rumors about a prospective XRP Exchange-Traded Fund (ETF) coming up. Importantly, these fresh benchmarks will provide clear pricing information, enabling investors to effectively assess their portfolio values.

CME Group Expands Crypto Benchmark Offerings

On July 29, CME Group, the global leader in derivatives markets, and CF Benchmarks announce the introduction of new reference rates and indices. These benchmarks are designed to offer transparent pricing information for XRP and ICP. Furthermore, this development has sparked anticipation regarding a potential Exchange-Traded Fund (ETF) launch for XRP.

According to Giovanni Viciuso, CME Group’s Global Head of Cryptocurrency Products, the latest innovation is commendable. This new feature is designed to empower clients by providing them with effective tools for managing their risks in the cryptocurrency market. In a recent press statement, Vicioso expressed his appreciation for this development.

Using our selection of 24 cryptocurrencies in CME CF References Rates and Real-Time Indices, we’ll offer pricing information for approximately 93% of the total cryptocurrency market capitalization that is open for investment.

During the evaluation of XRP and ICP, their performance will be measured against data sourced from prominent cryptocurrency exchanges such as Bitstamp, Coinbase, and Kraken, as stated in the declaration. This measure guarantees that market players have access to precise and dependable information.

Sui Chung, CF Benchmarks’ CEO, showed excitement about the announcement. He stated that CF Benchmarks feels “proud” to support the growth of the crypto asset class, considering the rising client demand for a varied cryptocurrency portfolio.

Significantly, the daily reference prices for each asset will be based on the US dollar value, which will be released at 4 p.m. in London, while real-time indices will be continuously updated every second.

Speculations Mounts For XRP ETF Launch

The news from CME Group has boosted hopes for the introduction of an XRP Exchange-Traded Fund (ETF). Previously, according to Bloomberg ETF analyst James Seyffart, the prospective approval of an ETF backed by Ripple’s native cryptocurrency hinges on its availability as a tradable asset on significant derivatives exchanges such as CME.

As a researcher studying the world of cryptocurrencies and exchange-traded funds (ETFs), I can tell you that Seyffart’s perspective holds significant weight when it comes to XRP‘s potential for an ETF listing on CME. The reasoning behind this lies in the fact that having a regulator-approved futures market for an asset is often seen as a prerequisite for creating an ETF based on that asset. In simpler terms, the presence of these futures contracts would serve as the primary asset required to mirror the performance of the ETF.

As a researcher, I’ve noticed an increasing excitement in the Exchange-Traded Fund (ETF) sector recently. The prospect of approving a Spot Ethereum ETF in the United States and the recent filings for a Spot Solana ETF have generated significant buzz in the market. Furthermore, the successful launch of the Spot Bitcoin ETF in the U.S. this year has significantly influenced the crypto market’s trajectory.

As a researcher studying the cryptocurrency market, I’ve noticed a surge of optimism following Ripple’s president expressing bullish views about an XRP Exchange-Traded Fund (ETF). This news has added fuel to the growing excitement among investors. The community is closely monitoring these developments, with fingers crossed for an ETF approval in the near future. If successful, this milestone could bring substantial benefits not only to Ripple but also to the entire cryptocurrency sector.

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2024-07-11 18:19