XRP is slowly cementing its position as an institutional token alongside Bitcoin [BTC] and Ethereum [ETH]. Over the past few years, the three have debuted on traditional exchanges like the CME, among others.
This availability to traditional investors could influence its long-term outlook, as well as the short term. Hence, whales are buying amid growing Futures trading volume.
XRP Futures volume on CME after a year of launch
According to the CME Group, the notional trading volume of XRP Futures hit $63 billion after a year of launch. This volume was equivalent to 28.6 billion XRP tokens traded during this period. During this period, the average daily volume was $238 million.
The daily trading activity had come from 1.32 million contracts, which also included micro XRP Futures. CME Group said that the data reflected growing institutional demand for regulated XRP exposure.
Furthermore, CME Group’s XRP Futures market led in Open Interest (OI), which drove this growth.
As XRP’s derivative activity exploded on traditional finance rails, whales upped their accumulation too.
XRP accumulation gains pace
For example – Over the past one week alone, whales bought well over 71 million XRP. The week started with a total of 3.71 billion XRP held by whales. The buying activity pushed this amount to around 3.79 billion tokens.
Apart from spot accumulation, investors have been buying the token through ETFs too.
The five Spot XRP ETFs held about 1.34% of the XRP supply after this month’s inflows. About $97 million worth of XRP ETFs flowed in May alone, with Bitwise leading the way.
Bitwise’s XRP ETF had an AUM of $345 million. It was followed by Canary, Franklin Templeton, 21Shares, and Grayscale, respectively. Only Grayscale was yet to exceed $100 million in AUM at press time.
Is a new trend approaching?
Long positions have also been rising for derivative traders. In fact, as per the Net Positions data, long orders increased significantly alongside the OI.
The OI was around $310 million, up from about $290 million in two days. This hinted that a new trend may be approaching, even though the price moved sideways between $1.34 and $1.38.
In case of volatility, the altcoin may rally to the upside, escaping the sideways consolidation.
If the sell wall above the $1.38 level clears, the massive capital inflows could push the altcoin higher. Conversely, XRP’s price may continue to drop as it’s not always the case for bullish signals to align with price moves. At times, the signal may not be ripe.
Final Summary
- XRP Futures’ notional volume on CME surged to $63 billion after one year of launch.
- XRP whales and ETFs have driven capital inflows, hinting at a potential new uptrend if volatility appears.
