XRP has risen by over 23% in the last two weeks following the announcement from the CME and CTF that they will be providing reference rates for the cryptocurrency.
It has also sparked speculations about an XRP ETF.
XRP is currently enjoying decent gains after an announcement by the Chicago Mercantile Exchange (CME) Group, declaring its decision to offer real-time indices and USD reference rates for both Ripple (XRP) and Internet Computer (ICP). CF Benchmarks will publish these indices daily starting on the 29th of July 2024. CME already has an impressive collection of Cryptocurrency benchmarks, and soon enough, XRP will join that suite.
Ripple’s CEO, Brad Garlinhouse, stated, “The first step towards institutional crypto products is to have a trusted benchmark reference rate.” This addition suggests a growing demand among investors for a more accurate and reliable price reference for the currency.
XRP currently trades around $0.515, a 26% increase from its price at the start of last week. This shows the positive impact of this integration with a trusted platform. Giovanni Vicisio, the Global Group Head of CF Benchmarks, stated that the new benchmarks will help market participants “better manage their risk” and provide “clear and transparent pricing data.”
The daily reference rates will be available between 15:00 and 16:00 UTC and will reflect the currency’s current dollar rates. The pricing data will also rely on some cryptocurrency exchanges and trading platforms, such as CoinBase, Bitstamp, Kraken, and Gemini. The price will be calculated from data from a combination of these platforms, ensuring uniformity and accuracy.
Real-time indices will also ensure that constant and current pricing or other related information is available to the general public. Market participants will then be able to make clear and informed decisions as updates are provided by the second. The CF Benchmarks CEO, Sui Chung, mentioned that the new benchmarks will be “subjected to the same rigorous standards as other benchmarks in the CME CF Single Asset Series.”
This new development has sparked some speculation about an XRP ETF launch. Garlinhouse had also previously mentioned that creating an XRP ETF is “inevitable”. CME’s decision could also help cement XRP’s credibility and promote its adoption across financial markets.
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