From Nasdaq: 2025-05-03 05:20:00

XRP (CRYPTO: XRP) is expected to face a minor risk that may temporarily impact its price, but this obstacle could ultimately become a positive factor in the long term. The catalyst in question is the launch of cash-settled XRP futures contracts by CME Group, scheduled for May 19 pending regulatory approval. While this announcement may lead to a slight price increase in XRP, there is a possibility of a subsequent drop in price once the futures trading begins. However, the introduction of futures trading is likely to support institutional adoption and increase liquidity for XRP.

Investors in XRP should be cautious of the “buy the rumor, sell the news” pattern often observed in markets. Known catalysts can lead to price appreciation before the event occurs, followed by a dip when the event actually happens. Despite the potential short-term price fluctuations, the availability of XRP futures can attract hedge funds, banks, and institutional investors to integrate the digital asset into various financial products. This development signals regulatory acceptance and may contribute to higher prices for XRP in the long run, alongside its utility in facilitating cross-border transactions.

While there is no guarantee of how XRP’s price will react to the futures trading launch, historical trends suggest a likelihood of price fluctuations. The introduction of futures trading is expected to drive demand for XRP indirectly and support its value over time. Investors should consider the long-term benefits of futures trading for XRP’s adoption and price growth, in addition to its current utility in the financial sector. The Motley Fool Stock Advisor team has not included XRP in their list of top stock picks, highlighting other investment opportunities with potential for significant returns in the future.



Read more at Nasdaq: This 1 New Risk for XRP Could Be a Long-Term Benefit