Just today CF Benchmarks has introduced a reference rate for Ripple’s XRP and Internet Computer (ICP). This move by the governing body earned praise from Ripple CEO Brad Garlinghouse.
Many in the space are of the opinion that this is great progress towards offering price data to market makers and opening up the door for institutional crypto offerings.
The Chicago Mercantile Exchange (CME) said it is launching new reference rates and real-time indices for XRP and ICP. The launch, planned for July 29, attempts to provide clear and pricing information to help users determine accurate portfolio values. This prompted conversations regarding the possibility of an XRP ETF being launched.
Giovanni Vicioso, CME Group’s Global Head of Crypto Products, said that with the inclusion of XRP and ICP, CME Group’s suite now includes 24 cryptos. This account for more than 93% of the total market capitalization of investable cryptocurrencies.
Ripple CEO said this is one of the steps to institutional crypto products, especially with the introduction of the XRP Index by CME Group and CF Benchmarks.
XRP ETF Potentiality Increases
The benchmarks for XRP and ICP, consequently, will derive pricing data from crypto exchanges such as Bitstamp, Coinbase, and Kraken. This gives market confidence that data provided are accurate and reliable because the daily reference rates for the USD price of every asset are published at 4:00 p.m.
Consequently, the creation of these benchmarks is an essential step toward the possible launching of an XRP ETF. Moreover, as per Bloomberg ETF analyst, the XRP ETF will be determined by the availability of the digital asset in a derivative exchange such as CME. Concurrently, Ripple president Monica Long stated her support of an XRP ETF.
Role of CF Benchmarks in Crypto Expansion
Subsequently, CF Benchmarks have helped in the growth of the cryptocurrency asset class in one way or another. Sui Chung, the CEO of CF Benchmarks, welcomed the announcement, stating that there has been higher client flow and interest. The new reference rates and real-time indices are beneficial to investors and boost the credibility of cryptocurrency pricing.
Consequently, the CF Benchmarks and CME Group are an emerging trend of providing institutional-grade products in the world of crypto trading. With pricing, these benchmarks are expected to support informed investment choices and encourage institutional investors.
Market Reactions and Future Prospects
The announcement of the new benchmarks has generated interest and speculation within the crypto community. The potential for an XRP ETF, boosted by the new reference rates and indices, has been a focal point of discussion.
The introduction of these indices will support the growth and adoption of XRP, providing a foundation for future institutional products.
With the backing of CME Group and Ripple, these benchmarks may enhance market transparency and reliability.
