The Chicago Mercantile Exchange (CME) announced the expansion of its cryptocurrency derivatives offering with the launch of XRP and solana (SOL) spot-traded futures contracts.
These new contracts are designed to complement the current range of spot-traded futures already available for bitcoin (BTC) and ether (ETH), all tradable also in relation to the main US stock indicessuch as the S&P 500, the Nasdaq-100, the Russell 2000 and the Dow Jones Industrial Average.
The CME, the largest and most prestigious financial derivatives exchange in the world, had already launched XRP futures in May as reported by CriptoNoticias. In this way, it consolidates its position in the digital asset derivatives market, providing investors with additional tools for risk management and price speculation.
Spot-traded futures contracts are a type of derivative agreement that directly reflects the spot price of the underlying asset, in this case XRP and SOL, and are settled in cash daily. Its functionality allows investors take futures positions in the same market conditions as the current price of the digital asset.
Unlike traditional futures, they are settled at a valuation that closely tracks the spot index, making it easier to understand and operate. Additionally, These contracts are attractive to institutional investors because they offer a long-term maturity.which eliminates the obligation to renew positions periodically.
Giovanni Vicioso, global head of cryptocurrency products at CME Group, highlighted that they have “seen strong demand for spot-traded bitcoin and ether futures, with more than 1.3 million contracts traded since their launch in June.”