CME Group to Introduce Bitcoin Friday Futures Options: All You Need to Know

CME Group has announced plans to introduce Bitcoin Friday futures options starting February 24, pending regulatory approval.

These new contracts will be the first financially-settled cryptocurrency options offered by CME, with expirations available Monday through Friday. They aim to provide traders with more flexibility in managing Bitcoin price risk.

CME Group Expands Bitcoin Derivatives With Cash-Settled Options

The Bitcoin Friday futures options will also be cash settled. Meaning that instead of having to take delivery of physical Bitcoin, traders can settle in cash, which opens the market up to more institutions and to the retail investor. This structure does not require the owning of coins as such but allows for very flexible risk management approaches.

According to Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, new contracts have their advantages. He said,

“We are happy to introduce these new tools that will help our clients to control the short-term risk of Bitcoin even more effectively.”

CME Group has already had some success with its Bitcoin Friday futures, which launched in September 2024. In the subsequent period, the trading has gone beyond 775,000 contracts with daily average trading volume of 9700 contracts.

Expanding Crypto Derivatives Offerings

CME Group will introduce new product Bitcoin Friday futures options as the new addition to its Bitcoin derivatives offering. These are physically-deliverable Bitcoin and Ether options. They give the investor a right to take delivery of the actual underlying asset when the option expires.

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The exchange also has Micro Bitcoin and Micro Ether futures that deliver smaller contract sizes for traders who want less exposure to the crypto market fluctuations.

Besides these products, CME Group has recently disclosed that it would add XRP and Solana (SOL) futures to its suite of crypto derivatives. The new contracts are expected to improve the market depth and provide increased opportunities for investors seeking to navigate the volatile digital assets space.

Joshua Lim, the Global Co-head of Markets at FalconX, explained the growing need for the diversified derivatives products. He said that as the list of available tradable assets within the cryptocurrency market expands, the new Bitcoin Friday futures options from CME Group will offer additional tools for risk management and tactical trading strategies.

According to Lim, the implementation of these choices will help to provide market participants with more exact value expectations on the price of Bitcoin, which will only enhance the current state of the crypto derivatives market.

Market Impact and Future Outlook

Since their launch, Bitcoin Friday futures have been the most popular cryptocurrency product of CME Group, with 44% of trading happening outside of the U.S. trading hours as demand is evident across the globe.

This is as regulated crypto investments become more popular with institutions looking for more specific investment products. Apart from launching new futures, CME is also extending the reach of its Bitcoin and Ether products through Robinhood, thus enabling futures trading to a new set of consumers.

CME Group to Introduce Bitcoin Friday Futures Options in February