The post CME Group Plans XRP and Solana ETFs for February 2024 Launch appeared first on Coinpedia Fintech News
The CME Group is reportedly gearing up to launch Futures ETFs tied to XRP and Solana, with a tentative release date of February 10, 2024, pending regulatory approval. This came just after Trump’s inauguration and Ripple’s closed-door meeting held this month the factors are hinting something bigger is on the way.
Many analysts are expecting many more ETFs will be hitting the market in the next 6 months. However, XRP and Solana are the top contenders for ETF approval after Bitcoin and ETH. Following the news, XRP faced $6.66 million in futures liquidations over the past 24 hours, with $3.92 million in longs and $2.73 million in shorts.
Notably, the proposed offerings include standard and micro contracts for both cryptocurrencies. For Solana, the contracts are set at 500 SOL and 25 SOL, while XRP contracts will feature 50,000 XRP and 2,500 XRP options. These contracts are designed to benefit diverse investor needs, from large institutions to retail participants seeking smaller-scale exposure.
Potential Ripple Effect on the Market
The announcement fits well with rising optimism about the U.S. SEC’s approval of cryptocurrency ETFs, particularly following leadership changes that have created a more favorable regulatory environment. However, the lack of direct confirmation from the CME has led to cautious reactions. Past incidents, such as the false reports of a BlackRock-backed XRP ETF in 2023, have heightened the need for verified information in such announcements.
Eleanor Terrett of Fox Business highlighted that CME’s move could lead to a wave of similar XRP and Solana Futures ETF products, reflecting the growing momentum in the crypto ETF sector. While Bloomberg ETF analyst Eric Balchunas initially commented on the news, he later retracted his statements, emphasizing the need for concrete updates from CME.
The confirmation rumors spread after the mock-up draft on the CME website was made public in error however CME Group spokesperson clarified to Fox Business that it was a glitch from their end. No official decisions have yet been made about launching futures contracts for either token.
A New Chapter for XRP and Solana
The launch of these ETFs could boost XRP and Solana by making them more accessible to institutional investors. Both the assets have suffered immense losses due to unfair regulatory trials and this could be the moment for them to recover their lost glory.
The growing interest in crypto ETFs is evident as asset managers like Rex-Osprey file for innovative offerings, including Dogecoin ETFs. These developments are driven by a shift in the SEC’s stance on crypto, which has already approved Bitcoin and Ethereum ETFs. Moreover, there is a buzz of TRUMP and MELANIA memecoin fillings that will also hit the market soon.
If successful, CME’s XRP and Solana Futures ETFs could mark a new chapter for these cryptocurrencies, opening doors to greater liquidity and adoption.