Traders have shown strong interest in XRP’s $1.10 call option on Deribit, with over $2 million locked in, making it the most popular option available. This surge in activity in the XRP options market is believed to be linked to optimism surrounding the possibility of an ETF for XRP.
As of now, the $1.10 call option for XRP, which is set to expire on Aug. 28, has an open interest of 4,347,000 contracts valued at $2.44 million. This significant amount of open interest indicates a bullish sentiment among traders. Griffin Ardern, head of options trading and research at BloFin, suggests that the increased activity in this call option may be a result of net long positioning.
Ardern also speculates that if XRP’s price can break the resistance level of $0.75, it is likely to rise above $1.10. He further mentions the possibility of institutions applying for an XRP ETF in the U.S., which could be a driving factor behind the price increase.
While XRP saw a 30% increase to 62 cents last month, it has since pulled back to just over 57 cents. This recent surge in the XRP options market comes after a ruling by U.S. District Court Judge Analisa Torres on the SEC’s motion against Ripple Labs. The court imposed a $125 million penalty on Ripple Labs for institutional sales of XRP but rejected the SEC’s demand for a $2 billion fine.
Ripple Labs viewed this judgment as a victory, raising hopes for a potential XRP ETF debut in the U.S. However, Martin Cheung, an options trader at Pulsar Trading Capital, remains skeptical about whether prices can rally beyond $1.10 by Aug. 28. Cheung believes that while a potential XRP ETF announcement could drive prices higher, reaching $1.10 may be too ambitious in the short term.
Overall, the surge in activity in the XRP options market reflects growing optimism among traders regarding the future price of XRP and the potential for an XRP ETF in the U.S. As the market continues to evolve, it will be interesting to see how these developments impact the price and trading activity of XRP in the coming weeks and months.