CME Group Adds XRP Reference Rate, ETF on Horizon?

The Chicago Mercantile Exchange (CME) has announced the launch of new reference rates and real-time indices for Ripple’s XRP and Internet Computer (ICP). Notably, this move by the leading derivatives marketplace CME Group has sparked speculations about a potential XRP ETF launch. Notably, the new benchmarks will offer transparent pricing data to help market participants accurately value their portfolios.

CME Group Expands Crypto Benchmark Offerings

CME Group, the world’s leading derivatives marketplace, and CF Benchmarks plan to launch the new reference rates and indices on July 29. These new benchmarks aim to provide clear pricing data for XRP and ICP. Besides, it has also fueled speculations over a potential XRP ETF launch.

Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, has lauded the development. Notably, this new offering will assist clients in managing their risks more effectively. In a recent press release, Vicioso said:

With 24 cryptocurrencies in our suite of CME CF References Rates and Real-Time Indices, we will provide pricing data across more than 93% of the investible cryptocurrency market capitalization.

Meanwhile, the benchmarks for XRP and ICP will use pricing data from leading crypto exchanges

like Bitstamp, Coinbase, and Kraken, according to the announcement. This ensures accurate and reliable data for market participants.

Sui Chung, CEO of CF Benchmarks also expressed enthusiasm towards the announcement. He said that “CF Benchmarks is proud” to back the expansion of the asset class, given the clients increasing activity towards a diversified range of cryptos.

Notably, the daily reference rates will reflect the U.S. dollar price of each asset, published at 4 p.m. London time, while real-time indices will be updated every second.

Also Read: US CPI Inflation Eases To 3% Raising Bets For Three Fed Rate Cuts

Speculations Mounts For XRP ETF Launch

The announcement from CME Group has fueled optimism about a potential XRP ETF launch. Previously, Bloomberg ETF analyst James Seyffart highlighted that the success of an ETF for Ripple’s native crypto depends on its presence in a major derivative exchange like CME.

According to Seyffart, listing XRP futures on CME would be crucial for regulatory approval of an ETF. This would provide the necessary primary asset for the ETF to reflect. Although the futures are not yet listed, this new offering has sparked discussions in the market.

In addition, the announcement comes amid soaring optimism in the ETF market. The anticipation of Spot Ethereum ETF approval in the U.S. and the recent filings for a Spot Solana ETF have stirred the market. Additionally, the success of the Spot Bitcoin ETF in the U.S. has significantly impacted the crypto market this year.

In addition, recent bullish sentiment from Ripple’s president towards an XRP ETF has further ignited interest. Having said that, the market is keenly watching these developments, hoping for an ETF launch soon. This could be a significant step for Ripple and the broader cryptocurrency market.

Also Read: Grayscale, VanEck & Other Bitcoin ETF Bag Millions From Madden Securities