The addition of XRP to the list of tradable assets on the Chicago Mercantile Exchange (CME) has reignited hopes across the crypto space, with growing speculation that the digital asset may soon see approval for a spot exchange-traded fund (ETF). This development comes ahead of a key decision from the U.S. Securities and Exchange Commission (SEC) regarding the Franklin XRP Fund, expected in June 2025.

CME’s inclusion of XRP futures reflects increasing confidence among major financial institutions. These XRP futures contracts allow investors to speculate on the asset’s future value without holding the actual tokens. Settled in cash rather than cryptocurrency, these contracts provide a regulated and simplified way for traditional investors such as banks, hedge funds, and asset managers to gain exposure to XRP in a safer environment.

This move has been greenlit by the Commodity Futures Trading Commission (CFTC), adding credibility and reinforcing XRP’s standing in the institutional market. Ripple’s CEO, Brad Garlinghouse, described the event as a major advancement for XRP and the broader ecosystem. He pointed to the trading firm Hidden Road, which was among the first to engage in a large-scale futures transaction through CME—signaling a rising wave of interest from sophisticated players.

Following this momentum, Nate Geraci, president of the ETF Store and cofounder of the ETF Institute, expressed confidence that XRP is now in a stronger position to be considered for a spot ETF. His outlook is tied to the upcoming SEC decision on the Franklin XRP Fund. If given the green light, it would allow a wider range of investors to gain direct exposure to XRP, much like the benefits seen from Bitcoin and Ethereum ETFs.

The case for a spot ETF is further supported by a landmark decision in 2023 from the DC Circuit Court. The court criticized the SEC’s inconsistency in approving futures-based ETFs while denying spot equivalents. It ruled that if an asset is supported by a robust CME futures market, denying a spot ETF is difficult to justify. Now that XRP fits this profile, the community sees a strong chance for approval.

Despite the positive sentiment, XRP’s price has shown little immediate movement. The token is currently valued at $2.37, down 0.77% over the past 24 hours. However, the 63.87% spike in trading volume suggests growing interest from both retail and institutional participants. While short-term price performance may appear muted, the increased activity hints that larger moves could be on the horizon.

Market analysts believe that the current developments could serve as a foundation for a significant price surge if regulatory conditions align. The rise in institutional engagement through CME has already begun to position XRP as a more mature investment vehicle. An ETF approval would only accelerate this shift by introducing XRP to a broader investor base and integrating it further into the mainstream financial system.

Still, uncertainties remain. The SEC has historically taken a cautious stance toward crypto-related financial products, and the ongoing legal proceedings between Ripple and the SEC have also clouded regulatory clarity around XRP. A recent technical glitch in the Ripple case has only added more uncertainty to the ETF narrative.

Nevertheless, the tide appears to be turning. Institutional investors are watching closely, and the infrastructure around XRP is steadily improving. With the Franklin XRP Fund decision just weeks away, attention is now focused on how the SEC will respond to a crypto asset that has a functioning futures market and growing support from traditional finance.

In summary, while XRP may not have broken out in price just yet, the groundwork is being laid for a potentially transformative period. As regulated financial instruments continue to integrate XRP and investor interest deepens, the coming months could be pivotal for the asset’s long-term trajectory—especially if a spot ETF enters the picture.