Ripple’s CEO identifies the potential in CF Benchmarks’ XRP Index product
Blockchain payments company Ripple Labs Inc. has recognized the upcoming introduction of CF Benchmarks’ XRP Index product.
CME Group Launches XRP Reference Rates
In an announcement on Wednesday, the Chicago Mercantile Exchange (CME) revealed the rollout of new reference rates and real-time indices for Ripple’s XRP and Internet Computer (ICP).
The new benchmarks are designed to offer transparent pricing data, aiding market participants in accurately assessing their portfolios. Notably, the official launch of these reference rates and indices is slated for July 29, sparking immediate speculation about the potential launch of an XRP exchange-traded fund (ETF).
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, emphasized the significance of these additions, stating, “With 24 cryptocurrencies in our suite of CME CF Reference Rates and Real-Time Indices, we will provide pricing data across more than 93% of the investible cryptocurrency market capitalization.”
In response to the unveiling of these reference rates and indices, Ripple CEO Brad Garlinghouse remarked that this development marks an initial stride towards institutional crypto products.
He acknowledged the collaborative efforts of CME Group and CF Benchmarks in introducing the XRP Index, underscoring that “the market has spoken.”
Potential for an XRP ETF
Simultaneously, the new XRP and ICP benchmarks will utilize pricing data from prominent cryptocurrency exchanges like Bitstamp, Coinbase, and Kraken. This ensures that market participants can readily access accurate and dependable data at all times.
Of significance, the daily reference rates will reflect the U.S. dollar price of each asset, published at 4 p.m. London time. Meanwhile, real-time indices will update every second.
CF Benchmarks played a pivotal role in expanding the cryptocurrency asset class. Sui Chung, CEO of CF Benchmarks, expressed enthusiasm for the announcement, noting increased client interest in a diverse range of cryptocurrencies.
Speculation regarding the potential launch of an XRP ETF remains ongoing. Previously, James Seyffart, a senior Bloomberg ETF analyst, highlighted that the viability of an ETF for Ripple’s native cryptocurrency hinges significantly on its presence on a major derivatives exchange such as CME. This recent development thus holds substantial implications for XRP in relation to a prospective ETF.
