CME Group has announced that it plans to launch Bitcoin Friday Futures (BFF) on September 30, 2024.
Designed to provide a more accessible and capital-efficient trading option, these new futures contracts will represent 1/50th of a Bitcoin.
Contracts will expire weekly every Friday at 4:00 PM New York time and will be settled based on the CME CF Bitcoin Reference Rate.
The BFF product aims to track the spot price of Bitcoin more closely than traditional monthly contracts, addressing the volatility and risk that typically occurs over weekends. The product is designed for investors looking to manage short-term Bitcoin exposure, allowing them to express both long and short positions in CFTC-regulated markets. Additionally, the smaller contract size can result in lower capital requirements and potential collateral offsets.
“The launch of Bitcoin Friday Futures offers a certain and flexible way to buy and sell Bitcoin risk,” CME Group said in a statement, adding: “With shorter durations and expiration tied to the CME CF Bitcoin Reference Rate, BFF contracts aim to enable more efficient market participation.”
*This is not investment advice.