The options market for XRP on Deribit is experiencing a notable surge in activity, with a focus on the $1.10 call option. This option, expiring on August 30, has garnered significant attention, with an open interest of 4,362,000 contracts, valued at $2.46 million. This makes it the most popular XRP option on the exchange.
What’s Driving the Betting Frenzy?
Griffin Ardern, Head of Options Trading at BloFin, suggests that a break above the $0.75 barrier could set the stage for a continuation towards $1.10. Additionally, the possibility of institutions applying for an XRP exchange-traded fund (ETF) in the U.S. could be a key factor driving up prices. The recent court ruling has sparked hopes of a potential XRP ETF launching in the U.S., leading to increased optimism.
Call Options: A Bet on Price Increase
When a buyer places a call option, they are betting that the price will rise above the strike price at which the call was purchased. In this case, the $1.10 option represents a bet that the price of XRP will double by the end of the month. This level of optimism is noteworthy, especially considering the XRP options market launched only five months ago.
Institutional Interest and ETF Prospects
The SEC’s approval of Bitcoin and Ethereum ETFs has opened doors to billions of dollars in mainstream money, impacting the price of BTC and ETH. Investors may be betting on XRP as it is likely the next in line. Nate Geraci, President of ETF Store, tweeted “Wen XRP ETF” in response to Ripple’s lawsuit victory, highlighting the potential for an XRP ETF.
However, not everyone is convinced that XRP prices can rally beyond $1.10 by the end of August. Trader Martin Cheung cited that XRP has already rallied significantly this year and that a potential ETF announcement might increase prices by around 20%, but $1.10 looks too ambitious.
The XRP options market is experiencing a significant surge in activity, with a focus on the $1.10 call option. As the market continues to evolve, it’s essential to monitor the factors driving this betting frenzy and assess the potential for XRP’s price to reach ambitious targets.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
