On Tuesday, CME Group, one of the world's largest derivatives exchanges, announced the successful launch of its bitcoin Friday Futures (BFF), now available for trading.
In what has been described as the most successful of the CME Group cryptocurrency product launch31,498 contracts were traded during two different contract weeks, with the first transaction taking place last Sunday.
CME Group bitcoin Friday Futures
Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, bitcoin-friday-futures-become-most-successful-cme-group-cryptocurrency-product-launch-302264271.html#:~:text=%22The%20launch%20of%20CME%20Group’s,of%20Derivatives%20Engine%20at%20Marex.” target=”_blank” rel=”noopener nofollow”>noted that the smaller contract size and weekly Friday expiration give investors a more accessible way to interact with the bitcoin market while effectively managing their exposure in a regulated environment:
We are pleased to see such early customer interest and support for these new contracts, both on screen and through the block market. The smaller size of these contracts, coupled with a weekly expiration on Friday, will give investors not only a more accessible way to access the bitcoin market, but will also allow them to more effectively manage their bitcoin exposure, all in a regulated exchange.
However, the importance of this release goes beyond mere numbers. According to Harry Benchimol, co-head of Marex's Derivatives Engine, the introduction of bitcoin Friday futures is a fundamental step towards the rise. crypto adoption under a regulated framework.
Benchimol also emphasized that these weekly contracts closely track the btc spot price, which he believes offers “efficient hedging opportunities and a profitable way” for investors to gain exposure to the largest cryptocurrency on the market.
A game changer for the crypto derivatives market?
Michael Harvey, head of franchise trading at Galaxy, echoed similar sentiments, noting that the launch advances cryptocurrencies substantially. derivatives market.
Harvey noted that the flexibility and efficiency of these contracts provide valuable tools for merchants looking to optimize their trading strategies while improving market liquidity; he stated:
These weekly contracts closely track spot prices, providing a valuable tool to increase liquidity and optimize trading strategies for traders of all types and sizes. As we continue to bridge the gap between traditional finance and the digital asset space, initiatives like this reinforce our commitment to providing clients with the best solutions to manage their bitcoin exposure in a transparent market.
bitcoin Friday futures are structured at one-fifth of a bitcoin and are cash settlement on the New York variant of the CME CF bitcoin Reference Rate (BRRNY) at 4:00 pm New York time every Friday.
A new BFF contract is also expected to be listed every Thursday at 6:00 pm New York time, allowing market participants to trade the two closest Fridays at any time.
At the time of writing, btc is trading at $62,100, down 2.3% in the last 24 hours.
Featured image of DALL-E, chart from TradingView.com
