Originally published on: October 01, 2024
In an unprecedented move, the Chicago Mercantile Exchange (CME) Group made waves in the world of cryptocurrency futures with the introduction of Bitcoin Friday Futures (BFF). The debut of BFF saw an impressive trading volume of over 31,498 contracts traded on the first day alone, setting a new standard for crypto futures offerings.
The launch on September 29 was hailed as the “most successful crypto futures launch ever,” with financial heavyweights Galaxy and Marex leading the charge by executing the first trade block. The BFF is a new derivatives product that is sized at one-50th of a Bitcoin and is cash-settled every Friday against the CME CF Bitcoin Reference Rate New York Variant (BRRNY), a key benchmark for BTC’s spot price.
These weekly contracts, listed every Thursday at the close of Wall Street markets, provide market participants with a unique opportunity to hedge or speculate on Bitcoin price movements in the short term without committing to longer futures contracts. The goal is to offer traders of all types and sizes a valuable tool for growing liquidity and optimizing trading strategies.
Beyond BFF, the CME Group has a diverse portfolio of crypto-derivative products, including futures and options contracts for BTC and ETH. According to Giovanni Vicioso, global head of cryptocurrency products at CME Group, the smaller size of these contracts and the weekly Friday expiry will not only make it easier for investors to access the Bitcoin market, but also enable them to manage their Bitcoin exposure more effectively – all on a regulated exchange.
As the demand for BTC derivatives continues to rise, CME’s BFF represents a significant step forward in the evolution of cryptocurrency futures trading. With rivals like Coinbase Derivatives offering their own futures contracts, the competition is fierce. However, the record-breaking launch of BFF proves that CME is a force to be reckoned with in the world of crypto futures trading.
