A $2 million bet on XRP volatility crosses the tape as prices surge
A trader has placed a $2.32 million 'long straddle' bet on XRP, anticipating significant price volatility before the August 28 expiration. This move signals a shift in market sentiment as traders move away from range-bound strategies.
Why it matters
Large derivative bets on cryptocurrency indicate institutional or high-net-worth interest and can influence short-term market liquidity and price action.
The trade was a “long straddle,” involving the simultaneous purchase of call and put contracts at the $1.16 strike level, according to derivatives analytics firm Laevitas. The trader purchased 2 million contracts in total, worth $2.32 million, while paying roughly $62,000 in premium. The position expires on August 28.
“2M XRP long straddle opened at the 1.16 strike for 28AUG26, $62k premium,” Laevitas reported. Charts showed a clear spike in open interest and buy volume at that strike on crypto exchange Deribit.
A long straddle is a classic volatility play. The buyer profits if the price moves far enough from the strike to cover the premium, regardless of direction. With only eight days left until expiration, this is a short-term bet that XRP will not stay near $1.16.
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