TL;DR
- CME Group launched Bitcoin Friday Futures (BFF) on October 1, 2024, with 31,498 contracts traded on the first day.
- The product offers contracts equivalent to one-fiftieth of a BTC, with weekly expirations on Fridays.
- The launch aims to bridge the gap between traditional financial markets and the crypto market, providing greater flexibility and liquidity.
On October 1, 2024, CME Group, the world’s leading derivatives marketplace, announced the launch of its new Bitcoin futures product, called Bitcoin Friday Futures (BFF).
The new offering was a major success on its first trading day, with 31,498 contracts exchanged across two different weeks of expiration. This result makes BFF the most successful cryptocurrency futures launch in the company’s history.
The initial success of this product is attributed to its innovative and accessible approach for investors looking to manage their BTC exposure within a regulated framework. Bitcoin Friday futures are designed to offer a simpler and more efficient way to enter the crypto industry.
How Does the New Bitcoin Product Work?
Each contract is sized at one-fiftieth of a Bitcoin, making them affordable for a wide range of investors with different levels of capital. Additionally, the contracts expire weekly on Fridays, providing investors with greater flexibility in managing their positions.
The first block trade of these futures took place on September 29, a few days before the official launch, and was executed by two major players in the digital asset trading space: Galaxy and Marex. This trade marked the start of institutional interest in the new product. This launch helps bridge the gap between traditional financial markets and the crypto market.
More Flexibility and More Liquidity
Bitcoin Friday futures are designed to settle to the CME CF Bitcoin Reference Rate New York Variant (BRRNY), with expirations at 4:00 p.m. New York time every Friday. Additionally, new contracts are listed every Thursday at 6:00 p.m., allowing investors to trade contracts for the nearest two Fridays at any given time. This provides greater flexibility compared to other cryptocurrency futures products and promotes higher liquidity in the market.
