Key facts
- IMC-Chicago, a proprietary trading firm with $418 billion AUM, disclosed significant holdings in XRP ETFs.
- The firm purchased shares in Bitwise XRP ETF, Teucrium 2x Long Daily XRP ETF (XXRP), and Volatility Shares 2x XRP ETF (XRPT).
- IMC-Chicago also opened new call options on multiple XRP ETFs, indicating a bullish stance.
- The firm held 135,900 put options on the Teucrium ETF XXRP, suggesting hedging activity.
- Institutional interest in XRP is growing, with other firms and Bank of America also holding XRP funds.
- XRP price saw a nearly 2% rebound to $1.03 amid increased trading volume and institutional inflows.
IMC-Chicago, a proprietary trading firm and market maker managing $418 billion in assets, has significantly increased its exposure to XRP through exchange-traded funds and options. The firm's Q2 filing with the U.S. Securities and Exchange Commission revealed substantial purchases of shares in multiple XRP ETFs, including the Bitwise XRP ETF, Teucrium 2x Long Daily XRP ETF (XXRP), and Volatility Shares 2x XRP ETF (XRPT). This move contributed to an almost 50% increase in IMC-Chicago's total portfolio value for the quarter.
In addition to direct shareholdings, IMC-Chicago opened new call bets on the Bitwise XRP ETF and XXRP, and held existing call positions across Canary XRP ETF, XXRP, XRPT, and ProShares Ultra XRP ETF, indicating a bullish outlook on XRP. The firm also reported holding 135,900 put options on the leveraged Teucrium ETF XXRP, which is interpreted as hedging activity amidst ongoing market uncertainty, particularly related to the US-Iran conflict.
The disclosure aligns with a broader trend of growing institutional interest in XRP. Previously, EverSource Wealth Advisors, with $3.6 billion in assets under management, disclosed significant holdings in various XRP funds. Bank of America also holds 13,000 shares of the Volatility Shares XRP ETF.
This increased institutional interest comes as the XRP price has seen a rebound of nearly 2%, trading at $1.03 following a dip. The price movement occurred alongside a rise in trading volume and announcements from Ripple regarding the XRPL 3.3.0 upgrade. Grayscale's GDLC ETF also increased its XRP allocation. Despite mixed activity in the derivatives market, total XRP futures open interest remains near $2.35 billion, with cumulative XRP ETF inflows exceeding $1.51 billion, including $3.45 million in inflows on Thursday.