Key Takeaways
- CME Group is launching Bitcoin Friday futures on September 30.
- The new contracts will settle every Friday using the BRRNY.
- These futures allow investors to reduce exposure to weekend Bitcoin price fluctuations.
CME Group announced the introduction of Bitcoin Friday futures (BFF), set to launch on September 30, 2024, pending regulatory approval.
These contracts, sized at one-fiftieth of a Bitcoin, will settle every Friday, allowing investors to more closely follow the spot price of Bitcoin and reduce weekend price risks.
A new BFF contract will be available each Thursday for trading the nearest two Fridays. The futures will be cash-settled using the CME CF Bitcoin Reference Rate New York Variant (BRRNY).
Smaller contracts
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, highlighted that the smaller, weekly expiring contracts allow a broad range of investors to better fine-tune their Bitcoin exposure.
Supporting the launch, executives from Interactive Brokers, Plus500, and Webull emphasized the product’s flexibility and appeal for both retail and institutional traders.
CME Group’s existing Bitcoin futures have shown strong demand, with an average daily volume of 14,554 contracts and record open interest of 27,900 contracts. The Micro Bitcoin futures also saw record trading volumes, reaching an average of 37,000 contracts daily.
