The $3 strike call option for XRP is the most traded, with significant buy trades indicating investor optimism.

Payments-focused cryptocurrency XRP XRP $2,2860 has risen by over 3.5% in the past 24 hours, with volume in the Deribit-listed options market suggesting bullish expectations.

Since July 1, higher-level July 25 call options at strikes of $3.00 and $4.00 and the Sept. 28 expiry call at the $2.80 strike have emerged as the most traded bets, according to data source Amberdata.

A call option gives the buyer the right to buy the underlying asset at a predetermined strike price at a later date. The option represents a bullish view on the market. For instance, the $3 strike call buyer is betting that XRP's spot price will top that level by July 25. On Deribit, one options contract represents one XRP.

A closer look at the flows reveals that the higher volume ranking for the $3 calls primarily stems from buy trades. In the past 24 hours, the $3 strike call has seen 2 million contracts change hands in investor buy trades (market makers on the opposite side). Conversely, investors have been mostly sellers or writers in the $2.8 call.

The $3 call is also the most popular bet in terms of the increase in open interest, or the number of active or open contracts, in the past seven days.

The increased activity in the higher strike calls follows strengthening expectations for a spot ETF debut in the U.S. According to Bloomberg's analysts Eric Balchunas and James Seyffart, the probability that the U.S. SEC will approve a spot XRP ETF now stands at 95% – almost a done deal.

On Wednesday, fintech firm Ripple, which utilizes XRP to facilitate cross-border transactions, announced that it has applied for a national banking license at the Office of the Comptroller of the Currency (OCC).