Bitcoin Futures Contract Launch
CME Group is preparing to launch a new Bitcoin futures contract named Bitcoin Friday futures on September 30, pending regulatory approval. These contracts are tailored for retail investors looking for more accessible options amid the high price of Bitcoin.
New Product Offering for Bitcoin Traders
Priced at one-fiftieth of a Bitcoin, the Bitcoin Friday Futures (BFF contracts) will be cash-settled and expire every Friday, providing traders with a flexible way to manage their Bitcoin exposure. The aim is to mitigate weekend price volatility by closely tracking the spot price of Bitcoin.
Enhancing Market Liquidity with Bitcoin Contracts
CME Group’s Giovanni Vicioso highlighted that the new Bitcoin contracts will allow both institutional and retail traders to fine-tune their Bitcoin exposure on a regulated exchange. Settling to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) enhances liquidity and market efficiency during U.S. trading hours.
Industry Support and Market Expansion
Interactive Brokers, Plus500, and Webull have shown support for the launch of these Bitcoin contracts, emphasizing the product’s flexibility, cost-effectiveness, and appeal to a broad range of investors. This move aligns with CME Group’s strategy to expand its cryptocurrency derivatives offerings after the success of its existing Bitcoin futures products.
