Brad Garlinghouse, the chief executive officer of Ripple Labs, has praised the decision by CME Group to introduce the first regulated XRP futures
Garlinghouse declared that the introduction of Ripple and Micro XRP futures was a “significant milestone” for his organization in a statement.
Additionally, he disclosed that Hidden Road, the primary brokerage that Ripple Labs recently acquired, successfully cleared the initial block at the CME open.
Investors are granted exposure to the price of XRP by introducing XRP futures, which also enhances transparency and risk management capabilities.
The launch will allow asset management firms to provide exchange-traded funds that monitor XRP futures, which is of paramount importance. The ProShares Bitcoin Strategy Fund is a prime illustration of this, as it has amassed assets exceeding $2 billion.
The future’s debut coincides with an increasing demand for assets that track XRP. XRP has received the most altcoin exchange-traded fund filings, with nine firms seeking approval, including Franklin Templeton, ProShares, Canary Capital, and Grayscale Investments. Solana is the second most frequently used application, with seven submissions.
Additionally, the Teucrium 2x Long Daily XRP exchange-traded fund, which recently debuted, has already amassed over $106 million in assets. In contrast, the 2x Solana exchange-traded fund, which is denoted by the ticker symbol SOLT, has amassed less than $35 million in assets four months after its inception.
The XRP price experienced a mild reaction to the futures launch, dropping to $2.33, a 12.25% decrease from its most significant point this month. This decline was consistent with the ongoing crypto market collapse and the fact that the launch had already been factored in.
