US Spot XRP ETF is getting closer with this important news

In a news that went largely unnoticed, Bitnomial Exchange, LLC, has self-certified On August 9, the Commodity Futures Trading Commission (CFTC) announced the approval of a new XRP futures contract. XRP US dollar futures contracts, or XUS, were scheduled to begin trading yesterday, August 13, 2024. However, the official website did not list any XRP futures contracts at the time of publication. Notably, this certification could pave the way for the approval of a spot ETF in the United States.

The XUS contract will be a physically settled futures contract, involving 100,000 units of XRP. In the official filing, Bitnomial outlined the structure and compliance measures associated with these futures, emphasizing adherence to multiple core principles set forth by the CFTC. These principles address critical areas such as market manipulation, trading practices, market disruption, and financial integrity.

In the compliance documentation, Bitnomial stated: “Bitnomial has determined that its rules relating to the listing of XUS contracts comply with the requirements of the Commodity Exchange Act and the rules and regulations promulgated by the Commission thereunder.” This compliance is crucial to addressing long-standing concerns about the stability and reliability of cryptocurrency markets.

Additionally, Bitnomial received support from market participants and clearing members. The document states that “the Exchange has spoken with clearing members and market participants who support the decision to launch US dollar futures contracts on XRP. The Exchange is not aware of any substantive opinions against the contracts.”

Implications for a US XRP Spot ETF

The significance of Bitnomial's move is magnified by its potential impact on the U.S. Securities and Exchange Commission's (SEC) stance regarding a spot exchange-traded fund (ETF). The SEC has long been hesitant to approve spot cryptocurrency ETFs, particularly those based on Bitcoin, primarily due to concerns about market manipulation and fraud in the underlying markets.

A key condition that the SEC has insisted Approval of these ETFs requires the existence of a “futures market of significant size,” a term that refers to a sufficiently large and regulated futures market that can provide adequate oversight and protection against potential fraud and manipulation in the spot markets.

The SEC's stance was reversed with the court's ruling in the Grayscale casewhich criticized the SEC for failing to adequately explain why it treats spot and futures ETFs differently when both are based on the same underlying asset. As a result, experts argue that the SEC may soon have to approve spot cryptocurrency ETFs, when there are already some based on approved futures.

The community has therefore responded enthusiastically to this news, perceiving it as a critical step towards the eventual approval of a spot ETF in the US. Chad Steingraber, an active member of the community, he stressed“Futures contracts are the first steps towards an XRP ETF. It is inevitable.”

Yassin Mobarak, founder of Dizer Capital, voiced Similar sentiments, referring to the development as “A prelude to an XRP Spot ETF.” Good Morning Crypto (@AbsGMCrypto) aggregate“a major step forward towards the launch of an XRP ETF in the US.”

Renowned ETF expert Nate Geraci, host of the ETF Prime podcast and co-founder of the ETF Institute, posted a Trump meme that read: “I'm refreshing the SEC website waiting for the XRP ETF filing…”