The Chicago Mercantile Exchange Group (CME), the largest derivatives exchange globally, has announced its plans to broaden its cryptocurrency offerings by introducing options on Solana and XRP futures starting October 13. This decision follows a period of record activity in Solana (SOL) and XRP (XRP) futures contracts, which were launched earlier this year.
Until now, CME’s options offerings primarily focused on Bitcoin (BTC) and Ether (ETH). By venturing into options for SOL and XRP, the exchange is marking a significant expansion in its product line. Futures contracts, which outline agreements to buy or sell an asset at a predetermined price on a future date, differ from options, which grant traders the right but not the obligation to execute trades at predetermined prices.
The upcoming options contracts will encompass both standard and micro-sized futures for SOL and XRP, with varying expiration dates including daily, monthly, and quarterly. However, the introduction of these new derivative products is pending regulatory approval. Giovanni Vicioso, CME’s global head of cryptocurrency products, emphasized that this expansion is a reflection of the substantial growth and heightened liquidity in the crypto futures markets. He expressed optimism that the new offerings would cater to a diverse range of participants, from institutional investors to sophisticated individual traders.
Since their debut, Solana futures have seen substantial trading activity, with over 540,000 contracts (valued at approximately $22.3 billion) exchanging hands since their March launch. Notably, August marked a peak in trading volume, with daily contracts reaching 9,000. Similarly, XRP futures have gained momentum since their introduction in May, accumulating over 370,000 contracts (worth around $16.2 billion) and achieving record open interest of $942 million in August.
The evolution of crypto derivatives in the U.S. began with the launch of regulated Bitcoin futures by the Chicago Board Options Exchange (Cboe) and CME Group in December 2017 under the oversight of the Commodity Futures Trading Commission (CFTC). The introduction of Ether futures followed in 2021, along with various micro contracts sized at 0.1 ETH. Historically, regulated crypto derivatives in the U.S. have been largely confined to Bitcoin and Ether.
Recent regulatory clarity, bolstered by initiatives such as the GENIUS Act and a pro-crypto stance from the White House, has led to a consistent rise in demand for regulated crypto derivative products. This market need has been addressed by both traditional exchanges and U.S.-based fintech firms, leading to a broader array of offerings.
In February, well-known cryptocurrency exchange Coinbase initiated the launch of Solana (SOL) futures contracts in the U.S., which included both standard and “nano” contract sizes. Additionally, the exchange announced its acquisition of Deribit, an options exchange. Meanwhile, crypto platform Kraken introduced its derivatives division in July, and Robinhood started offering micro futures contracts for Bitcoin, Solana, and XRP through its derivatives arm.
As these developments unfold, the landscape of regulated crypto derivatives continues to evolve, with open interest across global crypto futures and perpetual contracts remaining near $4 billion, as reported by CoinMarketCap.
