- Record Start for Bitcoin Friday Futures
- Structure and Features of the Contract
- Experts' Opinion and Future of the Product
CME Group unveiled a new derivative product - Bitcoin Friday Futures (BFF), which demonstrated record results on its first trading day.
Record Start for Bitcoin Friday Futures
On September 29, CME Group's new derivative product, Bitcoin Friday Futures (BFF), witnessed the most successful cryptocurrency futures launch ever. Over 31,498 contracts were traded on the first day, with the first trade block executed by financial firms Galaxy and Marex.
Structure and Features of the Contract
The new derivative product is cash-settled every Friday against the CME CF Bitcoin Reference Rate New York Variant (BRRNY), a benchmark for BTC's spot price. BFF contracts are sized at one-50th of a Bitcoin and listed every Thursday at the close of Wall Street markets. The weekly expiry allows market participants to hedge or speculate on Bitcoin price movements in the short term without the need to hold futures contracts for longer durations.
Experts' Opinion and Future of the Product
Michael Harvey, head of franchise trading at Galaxy, noted that these weekly contracts closely track spot prices, providing a valuable tool for growing liquidity and optimizing trading strategies for traders of all types and sizes. Giovanni Vicioso, global head of cryptocurrency products at CME Group, added that the smaller size of these contracts, along with a weekly Friday expiry, will provide investors with a more accessible way to access the Bitcoin market and effectively manage their exposure on a regulated exchange.
The launch of Bitcoin Friday Futures was highly successful, drawing attention from traders and experts worldwide. CME Group continues to expand its range of cryptocurrency products, offering new opportunities for market participants.
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