XRP Gains Momentum Following CME Announcement
- XRP has gained more than 23% in the past two weeks after the CME and CTF announced that they would provide a reference rate for the cryptocurrency.
- It also sparked speculation about an XRP ETF.
XRP is currently enjoying substantial gains after the Chicago Mercantile Exchange (CME) Group announced its decision to provide live index and USD reference rates for Ripple (XRP) and Internet Computer (ICP). CF Benchmarks will publish these indices daily starting July 29, 2024.
“The first step toward institutional crypto products is having a trustworthy benchmark reference rate,” said Ripple CEO Brad Garlinhouse. The addition demonstrates growing investor demand for more accurate and reliable currency price references.
XRP is currently trading at around $0.515, up 26% from its price at the beginning of last week. This shows the positive impact of integrating with a trusted platform. Giovanni Vicisio, global group head of CF Benchmarks, said the new benchmark will help market participants “better manage risk” and provide “clear and transparent pricing data.”
Improved Pricing Data
Daily reference rates will be provided between 15:00 and 16:00 UTC and will reflect the current USD exchange rate for that currency. Pricing data will also rely on a number of cryptocurrency exchanges and trading platforms, such as CoinBase, Bitstamp, Kraken and Gemini. Prices will be calculated based on data from a combination of these platforms to ensure uniformity and accuracy.
Real-time indices will also ensure that constant and current pricing or other relevant information is available to the public. Market participants will then be able to make clear and informed decisions the second an update is provided. Sui Chung, CEO of CF Benchmarks, mentioned that the new benchmark will “follow the same rigorous standards as other benchmarks in the CME CF Single Asset Series.”
XRP ETF Speculation
This new development has sparked some speculation about the launch of an XRP ETF. Garlinhouse has also previously mentioned that the creation of an XRP ETF is “inevitable.” The CME’s decision may also help solidify XRP’s credibility and boost its adoption in financial markets.
