XRP sees positive growth with launch of CFTC-regulated futures contracts on Coinbase

Coinbase has recently expanded its trading options by introducing XRP futures contracts, which will be settled in US dollars. This move comes in response to the growing demand for XRP from institutional investors, indicating a rise in bullish sentiment towards the cryptocurrency.

The launch of these XRP futures contracts marks a significant step for Coinbase Derivatives as it aims to cater to the increasing institutional interest in altcoin derivatives. By offering these new tools, investors can better manage risk while gaining exposure to the price movements of XRP, the fourth-largest cryptocurrency in terms of market capitalization.

The newly introduced XRP futures contracts come in two sizes to accommodate different types of traders. The NANO XRP futures product is tailored for small-scale traders, representing 500 XRP per contract and settling in US dollars. This product is ideal for smaller institutions and individual retail investors looking to maintain exposure to XRP’s price fluctuations. On the other hand, the XRP futures product represents 10,000 XRP per contract and targets active traders and larger institutions seeking exposure to XRP through cash-settled contracts.

With the addition of XRP futures contracts, Coinbase now offers a diverse range of futures products, including Bitcoin, Ether, Dogecoin, Stellar, Chainlink, and Solana. These new offerings are expected to contribute to the institutional acceptance of XRP and further support the maturation of its market. Institutions that typically avoid unregulated platforms will now have a safer way to invest in leading cryptocurrencies through these futures contracts.

Crypto futures are also seen as a stepping stone towards the launch of a spot Exchange-Traded Fund (ETF) in the US market. They play a crucial role in increasing liquidity and reducing market manipulation, ultimately boosting the price of the underlying asset. XRP, with its growing market depth, has emerged as a strong contender among leading altcoins, positioning itself favorably in the US spot crypto ETF race.

The positive market sentiment towards XRP has been reinforced by recent developments in the legal dispute between Ripple Labs and the SEC. As a result, various fund managers have filed for XRP-related investment products, signaling growing investor interest in the cryptocurrency.

At the time of writing, the price of XRP stood at around $2.1, reflecting a 3% increase in the last 24 hours. This price surge is indicative of rising institutional adoption, which is expected to further drive up the value of XRP. Cryptocurrencies like XRP are increasingly becoming integrated into traditional financial systems, marking a significant shift in the financial landscape.