Bitcoin Friday Futures Become Most Successful CME Group Cryptocurrency Product Launch

Rhea-AI Summary

CME Group has launched Bitcoin Friday futures (BFF), becoming their most successful cryptocurrency product launch with 31,498 contracts traded across two contract weeks. The first trade was executed by Galaxy and Marex on September 29. These futures are sized at one-fiftieth of one bitcoin and cash-settled to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) every Friday at 4:00 p.m. New York time.

Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, highlighted the strong customer interest and the benefits of the smaller contract size and weekly Friday expiry. Industry leaders from Marex and Galaxy praised the launch, emphasizing its role in bridging traditional finance and crypto markets, and providing efficient hedging tools.

A new BFF contract is listed every Thursday at 6:00 p.m. New York time for a Friday trade date, with traders able to access the nearest two Fridays at any given point.

Positive

• Launch of Bitcoin Friday futures (BFF) became CME Group's most successful crypto futures launch with 31,498 contracts traded on day one
• Smaller contract size (one-fiftieth of one bitcoin) and weekly Friday expiry provide more accessible and effective bitcoin exposure management
• Strong early customer interest and support for the new contracts, both on-screen and through the block market
• Provides a regulated platform for bitcoin futures trading

Negative

• None.

News Market Reaction

+2.10%

1 alert

+2.10% News Effect

On the day this news was published, CME gained 2.10%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHICAGO, Oct. 1, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its Bitcoin Friday futures (BFF) have launched and are available for trading. 31,498 contracts traded across two different contract weeks. The first trade, a block, took place on Sunday, September 29 and was executed by Galaxy and Marex.

"With more than 31,000 contracts traded on day one, Bitcoin Friday futures have become our most successful crypto futures launch ever," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. "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, along with a weekly Friday expiry, will provide investors with not only a more accessible way to access the bitcoin market, but will also allow them to more effectively manage their bitcoin exposure – all on a regulated exchange."

"The launch of CME Group's Bitcoin Friday futures is a significant step toward crypto adoption within a regulated framework. These weekly contracts offer efficient hedging by closely tracking the spot price and provide a cost-effective exposure to bitcoin," said Harry Benchimol, Co-Head of Derivatives Engine at Marex. "By introducing a product closer to the very popular perpetuals on crypto platforms, CME Group is closing the gap between traditional financial and crypto markets. Marex is proud to have executed the first block trade, reinforcing our commitment to improving liquidity and driving innovation in the crypto market."

"The launch of Bitcoin Friday futures by CME Group represents a significant advancement in the broadening of crypto derivatives markets, offering investors a flexible and efficient way to manage their bitcoin exposure," said Michael Harvey, Head of Franchise Trading at Galaxy. "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. As we continue to bridge the gap between traditional finance and the digital asset space, initiatives like this reinforce our commitment to empowering clients with the best solutions to manage their bitcoin exposure in a transparent market."

Bitcoin Friday futures are sized at one-fiftieth of one bitcoin and 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 BFF contract is listed every Thursday at 6:00 p.m. New York time for a Friday trade date, with market participants able to trade the nearest two Fridays at any given point.

For more information on these products, please visit www.cmegroup.com/bff.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange ICBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

CME-G

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SOURCE CME Group

FAQ

What are Bitcoin Friday futures (BFF) and when were they launched by CME Group?

Bitcoin Friday futures (BFF) are new cryptocurrency futures contracts launched by CME Group on September 29, 2024. They are sized at one-fiftieth of one bitcoin and cash-settled to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) every Friday at 4:00 p.m. New York time.

How many Bitcoin Friday futures contracts were traded on the first day of launch for CME:CME?

On the first day of launch, 31,498 Bitcoin Friday futures contracts were traded across two different contract weeks, making it CME Group's most successful cryptocurrency product launch ever.

What are the key features of CME Group's Bitcoin Friday futures (BFF)?

Key features of CME Group's Bitcoin Friday futures (BFF) include: smaller contract size (one-fiftieth of one bitcoin), weekly Friday expiry, cash settlement to the CME CF Bitcoin Reference Rate New York Variant (BRRNY), and trading on a regulated exchange. A new BFF contract is listed every Thursday for Friday trade dates.

Who executed the first trade of Bitcoin Friday futures for CME:CME?

The first trade of Bitcoin Friday futures, which was a block trade, was executed by Galaxy and Marex on Sunday, September 29, 2024.