Bitcoin (BTC) has seen a significant rise in recent days, reaching above $66,000. As the market begins to revive with this rise, CF Benchmarks CEO explained the key benefits of CME Bitcoin Friday Futures trading for investors.
CF Benchmarks CEO Sui Chung noted that CME Bitcoin Friday futures (BFF) were launched on September 30 and recorded over 31,000 traded contracts on the first day.
Stating that with this success, Bitcoin Friday futures (BFF) has become CME's most successful crypto futures startup, Chung said that weekly contracts offer investors more advantages than monthly contracts.
Chung also added that CME Bitcoin contracts allow them to bet on important macro events such as US economic data.
“Bitcoin Friday Futures offers traders a number of benefits, including a lower basis or spread over spot prices, lower rollover costs, and more targeted trading strategies.
The narrow weekly time frame of these contracts typically results in lower basis compared to their monthly counterparts, simplifying trading and analysis of economic data for retail investors.
The shorter duration of these contracts, which are weekly compared to monthly contracts, minimizes the difference between futures and spot prices, providing lower premiums and increasing investors' profitability.
Additionally, retail traders on unregulated offshore exchanges often opt for perpetual futures to match price with the spot market.”
*This is not investment advice.