Bitrabo Editorial
Bitnomial Exchange, LLC, has taken a significant step by self-certifying a new futures contract for XRP with the Commodity Futures Trading Commission (CFTC) on August 9. The XRP US Dollar Futures contracts (XUS) were set to begin trading on August 13, 2024. This move has implications for the potential approval of a spot ETF in the United States.
The XUS contract is a physically settled futures contract involving 100,000 units of XRP. Bitnomial has outlined the structure and compliance measures linked to these futures to ensure adherence to the core principles set by the CFTC, focusing on areas such as market manipulation, trading practices, and financial integrity.
Bitnomial’s compliance with the requirements of the Commodity Exchange Act and the regulations set by the CFTC is essential for enhancing stability and reliability in the cryptocurrency markets.
Furthermore, Bitnomial has received support from market participants and clearing members for the launch of XRP US Dollar Futures contracts, indicating a positive reception within the industry.
Significance for US Spot XRP ETF
Bitnomial’s actions could have a significant impact on the US Securities and Exchange Commission’s (SEC) approach to a spot Exchange-Traded Fund (ETF). The SEC has been cautious about approving spot crypto ETFs, particularly for Bitcoin, citing concerns about market manipulation and fraud.
One key requirement set by the SEC for approving ETFs is the existence of a robust “futures market of significant size” to ensure effective surveillance and protection against fraud and manipulation in spot markets.
The recent court ruling in the Grayscale case questioned the SEC’s differential treatment of spot and futures ETFs based on the same underlying asset, potentially prompting the SEC to consider approving spot crypto ETFs in line with the approved futures-based ones.
The community has responded positively to Bitnomial’s move, viewing it as a crucial step towards the eventual approval of a US spot ETF. Several key figures have expressed optimism about the development, anticipating progress towards an XRP Spot ETF in the USA.
Currently, XRP is trading at $0.5773.