The options market for XRP on Deribit is experiencing a significant surge, with the $1.10 call option being the most popular among traders. This option reflects a bet that XRP’s price, currently at $0.566, will double by month’s end. Open interest for this option, expiring on August 30, is 4,362,000 contracts, valued at $2.46 million. This makes it the most favored XRP option on the exchange.
XRP Options Market Shows Rapid Growth
Notably, the XRP options market on Deribit launched just five months ago. Since then, active bets have skyrocketed by over 830,000 contracts, reflecting growing investor interest in XRP’s price movement.
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A call option allows a buyer to purchase XRP at an agreed-upon price in the future, but before the option’s expiry date. Essentially, call buyers are optimistic, betting that the price will exceed the strike price at which they bought the call.
Factors Fueling Optimism for XRP’s $1.10 Target
Several factors contribute to the increased bets on XRP reaching $1.10. Griffin Ardern, Head of Options Trading at BloFin, noted that breaking the $0.75 barrier could lead to a move towards $1.10. He also mentioned that institutions applying for an XRP ETF in the U.S. could push prices higher.
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The recent court ruling in favor of Ripple Labs has also fueled optimism, sparking hopes for a possible XRP ETF launch in the U.S. “Wen XRP ETF,” tweeted Nate Geraci, President of ETF Store, in response to Ripple’s lawsuit victory.
Investors are drawing parallels with the SEC’s approval of Bitcoin and Ethereum ETFs, which brought billions of dollars in mainstream investment and positively impacted BTC and ETH prices. As a result, many believe XRP could be next in line for similar gains.
However, not everyone is convinced that XRP can rally beyond $1.10 by the end of August. Trader Martin Cheung pointed out that XRP has already seen significant gains this year. While a potential ETF announcement might boost prices by around 20%, he argued that $1.10 remains an overly ambitious target within such a short timeframe.
