XRP’s next rally could put this 115 million

1. CME XRP open interest rose 39.6% in a week as leveraged funds more than doubled their net short to 115.7 million XRP-equivalent.
2. The positioning split sharply, with dealers and asset managers adding net longs while leveraged funds held the largest reportable short.
3. The report does not show whether leveraged-fund shorts are bearish bets or hedges, leaving their next move crucial if XRP keeps rising.

Leveraged funds more than doubled their CME XRP net short as open interest surged nearly 40% in one week.

Last week, the Commodity Futures <a href="https://xpertsstudio.com/russia-legalizes-crypto-trading-sees-first/” title=”Russia Legalizes Crypto Trading, Sees First”>Trading Commission (CFTC) reported that XRP open interest increased by 2,206 from a week earlier, to 7,783 futures-equivalent contracts. At 50,000 XRP per standard contract, the increase represented about 110.3 million tokens and lifted total exposure to roughly 389.2 million XRP.

The expansion came during a sharp recovery in the token. CryptoSlate previously reported that the digital asset had rebounded about 32% from $1 this month, trading near $1.38 as of press time.

Leveraged funds moved against that momentum, holding 892 long contracts and 3,206 shorts. Their net short widened to 2,314 contracts, equivalent to about 115.7 million XRP, from 57.35 million XRP a week earlier.

The increase added 58.35 million XRP-equivalent of net short exposure and left leveraged funds with the largest directional short among the reportable CFTC categories.

Dealers and asset managers moved the other way.

Dealers increased their net-long position by 1,195 contracts, equivalent to 59.75 million XRP, ending at 2,121 contracts net long. Asset managers added 565 net contracts, or 28.25 million XRP-equivalent, to finish 843 contracts net long.

The positioning split shows CME’s rapidly expanding XRP market is producing sharply different institutional exposures rather than a uniform view on the token’s direction. The CFTC does not disclose whether leveraged-fund shorts are outright bearish bets or hedges against positions elsewhere.

Their growing exposure nevertheless leaves leveraged funds more vulnerable to another advance of the Ripple-linked token.

This is because the category added 58.35 million token net shorts during a week when the token was already recovering, while dealers and asset managers increased their net longs.

If XRP keeps rising while leveraged funds maintain or expand their short exposure, the gap between price momentum and institutional positioning will widen further. A retreat in those shorts would instead show that the rebound has begun forcing a change in how leveraged funds are positioned.

1HDown0.13%24HDown2.40%7DDown8.08%
30DUp28.20%60DUp28.80%90DUp7.62%

XRP is -2.40% over the past 24 hours and currently sits at rank #5 by market cap.

Market cap$85.55B
Volume (24h)$2.56BUp113.28%
Circ. supply62.74B
FDV$136.34B
Loading price history…
Related AssetXRP#5XRP$1.3624-hour change: down2.40%Loading price history…24HDown2.40%7DDown8.08%30DUp28.20%Related CompanyCME GroupDerivatives marketplace
FeaturedPrice WatchTradingMarketTradFiXRP

Editorial credits

Source: cryptoslate.com