Key Points:
- CME Group has launched its Bitcoin Friday futures, achieving a record volume of 31,498 contracts on the first day of trading.
- Each BFF contract is cash-settled to the CME CF Bitcoin Reference Rate and sized at one-fiftieth of a Bitcoin.
CME Group, which leads in the derivatives marketplace, officially launched its Bitcoin Friday futures, or BFF, securing the first major milestone in the trading landscape for cryptocurrencies.
Read more: Nasdaq Bitcoin Index Options Seeks SEC Approval to Launch
Record-Breaking Bitcoin Friday Futures Launched by CME Group
The exchange reportedly set an outstanding volume of 31,498 contracts across two different contract weeks on the first day of trading. The first trade was executed by Galaxy and Marex on Sunday, September 29.
The new weekly futures contracts, sized at one-fiftieth of a Bitcoin, will be cash-settled to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) at 4:00 p.m. New York time every Friday.
A new Bitcoin Friday futures contract will be listed every Thursday at 6:00 p.m. New York time for trading on the next Friday, enabling market participants to always trade the nearest two Fridays anytime. This weekly expiry closely tracks the spot price of Bitcoin and gives investors a mechanism to help manage price fluctuations over the weekend.
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, said, “With more than 31,000 contracts traded on day one, Bitcoin Friday futures have become our most successful crypto futures launch ever.”
Bitcoin Trades Below $63,000 Amid Geopolitical Tensions
CME Group has also launched Bitcoin and Ethereum futures, along with micro versions of each, sized at a tenth of the respective coins, launched last year. However, trading volumes for its micro-Bitcoin futures have risen by about 200% compared to the same period in the previous year.
At the moment, Bitcoin changes hands below $63,000 amidst growing geopolitical tensions after reports that Iran is preparing a ballistic missile attack on Israel, citing a senior US administration official.
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