CME Group Launches Record-Breaking Bitcoin Friday Futures With 30,000 Contracts

On Tuesday, the CME Group, one of the world’s largest derivatives marketplaces, announced the successful launch of its Bitcoin Friday Futures (BFF), now available for trading. 

In what has been described as CME Group’s most successful cryptocurrency product launch, 31,498 contracts were traded over two different contract weeks, with the first trade taking place this past Sunday.

Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, noted that the smaller contract size and weekly Friday expiry provide investors with a more accessible way to engage with the Bitcoin market while effectively managing their exposure in a regulated environment:

We are pleased to see such early customer interest and support for these new contracts, both on screen and through the block market. The smaller size of these contracts, along with a weekly Friday expiry, will provide investors with not only a more accessible way to access the Bitcoin market, but will also allow them to more effectively manage their bitcoin exposure – all on a regulated exchange.

However, the significance of this launch extends beyond mere numbers. According to Harry Benchimol, Co-Head of Derivatives Engine at Marex, introducing Bitcoin Friday futures is a pivotal move toward increasing crypto adoption under a regulated framework. 

Benchimol also emphasized that these weekly contracts closely track the BTC’s spot price, which he believes offers “efficient hedging opportunities and a cost-effective way” for investors to gain exposure to the largest cryptocurrency on the market.

Michael Harvey, Head of Franchise Trading at Galaxy, echoed similar sentiments, highlighting that the launch substantially advances the crypto derivatives market. 

Harvey noted that the flexibility and efficiency of these contracts provide valuable tools for traders seeking to optimize their trading strategies while enhancing market liquidity; he stated:

These weekly contracts closely track spot prices, providing a valuable tool for growing liquidity and optimizing trading strategies for traders of all types and sizes. As we continue to bridge the gap between traditional finance and the digital asset space, initiatives like this reinforce our commitment to empowering clients with the best solutions to manage their bitcoin exposure in a transparent market.

The Bitcoin Friday futures are structured at one-fifth of one Bitcoin and are cash-settled based on the CME CF Bitcoin Reference Rate New York Variant (BRRNY) at 4:00 PM New York time every Friday. 

A new BFF contract is also expected to be listed every Thursday at 6:00 PM New York time, allowing market participants to trade the nearest two Fridays at any given time.

At the time of writing, BTC is trading at $62,100, down 2.3% over the past 24 hours. 

Featured image from DALL-E, chart from TradingView.com