Traders Transact 85 billion XRP Tokens Monthly on Cash Markets

The digital assets landscape is rapidly evolving, with XRP taking center stage in recent developments. The American derivatives firm Bitnomial recently made headlines with its ambitious plan to launch XRP/USD Futures contracts.

This announcement has sparked discussions about the possibility of a spot XRP Exchange-Traded Fund (ETF) launching in the United States.

XRP Trading Volume Insights

Amid this buzz, a significant revelation has emerged from Bitnomial's submission to the Commodity Futures Trading Commission (CFTC). Australian pro-crypto attorney Bill Morgan drew attention to some critical data highlighting the sheer scale of XRP's presence in the cash markets.

It is interesting to consider some information disclosed by Bitnomial in its submission to the CFTC for certification of its listing of XUS (XRP USD Futures).

On average the monthly XRP trade is over 85 billion on XRP cash markets.

Bitnomial proposesa spot month position limit... pic.twitter.com/uEwJak0zlA

- bill morgan (@Belisarius2020) August 14, 2024

One of the most striking figures revealed by Bitnomial's filing is the staggering volume traded monthly on cash markets (over 85 billion tokens).

CoinMarketCap's data validates this claim, with the average daily trading volume of XRP reaching $1.6 billion over recent weeks. However, this figure is not static, as XRP's trading volume is known to experience significant spikes during periods of increased market activity.

For example, XRP's daily trading volume surged past $5 billion earlier this month. This spike hinged on the final ruling in the SEC VS. Ripple case, which saw a favorable outcome for XRP.

Korea Upbit is seeing almost the most volume in the world right now.. #XRP https://t.co/RnMNR7DJvD pic.twitter.com/qHpxChH9xT

- Chad Steingraber (@ChadSteingraber) August 7, 2024

Meanwhile, South Korean exchanges were particularly active during this period, contributing much of the trading volume. But this isn't an isolated incident.

Last July, XRP's trading volume also increased dramatically following a summary judgment by Judge Analisa Torres, who ruled that Ripple's token is not a security. On that occasion, XRP's volume peaked at $10.4 billion, though this was only the 76th highest volume day in XRP's history.

Beyond the trading volumes, Bitnomial's proposal to the CFTC has introduced other vital considerations. One of these is the spot month position limit set at 300 million XRP, which equates to about 0.049% of the total supply.

A Path to a Regulated ETF

Furthermore, Bitnomial's filing with the CFTC includes a U.S. clearinghouse license, ensuring the firm adheres to stringent regulatory standards. This license addresses market manipulation concerns and safeguards market participants' interests.

Bitnomial's acquisition of this license last December marks a significant step forward in legitimizing XRP trading in a regulated environment.

Meanwhile, the Ripple vs. SEC lawsuit has been pivotal for XRP, with the July 2023 summary judgment ruling affirming that XRP is not security.

This legal victory has significantly strengthened investors' and the broader financial community's confidence in XRP's regulatory standing.

The combination of this ruling and Bitnomial's CFTC-approved futures contracts may pave the way for the much-anticipated spot XRP ETF. Such an ETF would be a game-changer, offering investors a regulated and accessible way to gain exposure to XRP.

Moreover, futures contracts, like those proposed by Bitnomial, are often seen as precursors to spot ETFs. They establish a regulated structure and provide a reliable pricing mechanism for potential ETF issuers to use as a reference.

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