CME Group Introduces Record-Breaking Bitcoin Friday Futures With 30,000 Contracts
Bitcoin Friday Futures (BFF) were successfully launched by the CME Group, one of the world's major derivatives exchanges, on Tuesday.
CME Group's most successful cryptocurrency product launch saw 31,498 contracts traded over two contract weeks, starting Sunday.
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, said the lower contract size and weekly Friday expiration make Bitcoin investing more accessible and manageable in a regulated environment:
We appreciate early client support for these new contracts on screen and in the block market. These contracts' lower size and weekly Friday expiration will make Bitcoin trading easier for investors and help them manage their bitcoin exposure on a regulated exchange.
The importance of this launch goes beyond statistics. Harry Benchimol, Marex Co-Head of Derivatives Engine, believes Bitcoin Friday futures would boost crypto adoption under regulation.
Benchimol further noted that these weekly contracts closely mirror the BTC's spot price, providing “efficient hedging opportunities and a cost-effective way” for investors to obtain exposure to the biggest cryptocurrency.
Crypto derivatives market game changer?
Galaxy's Head of Franchise Trading, Michael Harvey, said the introduction boosts the crypto derivatives industry.
Harvey said these contracts' flexibility and efficiency help traders improve their trading tactics and increase market liquidity:
These weekly contracts closely follow spot prices, helping traders of all sizes increase liquidity and optimize trading tactics. As we combine conventional banking and digital assets, efforts like these strengthen our commitment to provide customers with the finest bitcoin exposure management solutions in a transparent market.
Every Friday at 4:00 PM New York time, the CME CF Bitcoin Reference Rate New York Variant (BRRNY) cash-settles Bitcoin Friday futures at one-fifth of one Bitcoin.
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