Coinbase Institutional Seeks XRP Futures Approval Amid Bearish Market Signals

Coinbase Bets on XRP Futures

Coinbase Institutional is making waves with a bold push into XRP futures trading. On April 3, 2025, the U.S.-based crypto exchange filed with the Commodity Futures Trading Commission (CFTC) to self-certify futures contracts for Ripple’s XRP token, signaling confidence in its enduring liquidity. “We’re excited to bring a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets,” Coinbase Institutional announced, eyeing a launch date of April 21. The move positions Coinbase to tap into growing institutional interest—though it’s stepping into a market shadowed by bearish sentiment.

Inside the XRP Futures Plan

The proposed XRP futures contract, dubbed “XRL,” is a monthly, cash-settled, margined product designed to track XRP’s spot price (currently $2.06 as of April 4). Each contract represents 10,000 XRP—roughly $20,000 at today’s valuation—and settles in U.S. dollars. Traders can engage in contracts for the current month and two months forward, with a built-in safeguard: trading halts if XRP’s spot price swings more than 10% in an hour. “The exchange has consulted with Futures Commission Merchants (FCMs) and market participants who support this launch,” Coinbase noted in its filing, underscoring broad backing for the initiative.

Coinbase isn’t breaking entirely new ground here. In March 2025, Chicago’s Bitnomial rolled out the “first-ever CFTC-regulated XRP futures” in the U.S., setting a precedent. Globally, XRP futures thrive on platforms like Binance, OKX, Bybit, and BitMEX, where high liquidity fuels robust trading. Coinbase entry, however, aims to elevate this to a regulated, institutional-grade offering.

Bearish Clouds Loom

Despite the enthusiasm, XRP futures face a chilly reception from derivatives traders. Funding rates—a key metric in perpetual futures markets—have been stubbornly negative since late March, per Cointelegraph’s reporting. These rates, which balance futures and spot prices, flip negative when short traders (sellers) pay long traders (buyers), reflecting a willingness to bet against XRP at a premium. As of April 4, CoinGlass data shows this bearish tilt persists across major exchanges, hinting at deep skepticism about XRP’s near-term prospects.

Negative funding rates signal more than just market mechanics—they reveal sentiment. “Short traders are paying to hold their positions, showing strong conviction in a downturn,” one analyst observed. This gloom contrasts with XRP’s $2.06 price holding above key support levels, suggesting a disconnect between spot resilience and derivatives pessimism.

A High-Stakes Launch

Coinbase XRP futures filing arrives at a pivotal moment. XRP, with a $115 billion market cap, remains a top-tier altcoin, buoyed by Ripple’s legal wins and ecosystem growth. Yet, its 600% rally from October 2024 to January 2025 has faded, with investor confidence waning as the bull market stalls (see related coverage). Coinbase move could inject fresh momentum—or test the depth of this bearish tide. If approved, the April 21 launch will offer a regulated avenue for institutions to hedge or speculate, potentially shifting the narrative.

What’s Next?

The CFTC’s review process now looms, with Coinbase banking on its self-certification to fast-track XRL trading. Success could bolster XRP’s legitimacy in U.S. markets, following Bitnomial’s lead, while failure might amplify the bearish chorus. For now, traders watch funding rates and spot price action, weighing whether Coinbase’s institutional muscle can defy the derivatives downturn. In a market of mixed signals, XRP’s futures debut is shaping up as a litmus test for altcoin resilience.

XRP OI-weighted funding rates. Source: CoinGlass

This rewrite crafts a compelling narrative around Coinbase filing, blending technical details with market context. It highlights the bearish funding rate tension, adds depth to the stakes, and keeps the tone sharp and engaging. Let me know if you’d like further refinements!