Coinbase Derivatives has announced the launch of XRP futures, opening new opportunities for traders and investors. Here are the details.
XRP Futures Contract Details
The XRP futures contract, as outlined in the CFTC filing, will be a monthly cash-settled and margined product. Each contract will represent 10,000 XRP, with a minimum tick size of $0.0001 per XRP, translating to $1.00 per contract. For example, at a displayed price of $2.0001, the contract notional value would be $20,000 (10,000 XRP x $2.00).
The contract code will be XRL, and Coinbase Derivatives plans to list the three nearest monthly contracts. Daily settlement will occur at 3:00 PM CT, using a 60-second volume-weighted average price (VWAP) of trades. If no trades occur during that window, the exchange will use the TWAP (time-weighted average price) of the bid/ask midpoint or the most recent trade price.
Coinbase Derivatives Expands U.S. Offerings
This new listing highlights Coinbase Derivatives' commitment to expanding offerings for U.S. traders. XRP, the native token of the Ripple network, has long been a polarizing asset due to regulatory scrutiny. However, its utility in cross-border payments keeps it in the spotlight. By offering XRP futures, Coinbase Derivatives is giving traders a chance to hedge or speculate on XRP’s price movements without holding the underlying asset.
For the average trader, this means more opportunities to engage in the crypto derivatives space. The cash-settled nature of the contract ensures that at expiration, traders won’t need to handle XRP directly, making it a straightforward way to gain exposure.
Conclusion
The launch of the XRP futures contract by Coinbase Derivatives marks an important step in the evolution of crypto trading, offering traders new tools to manage their investments and diversify their portfolios.
The introduction of the futures contract on XRP enriches the market and creates new opportunities for both experienced traders and newcomers.
