When Bitcoin Friday Futures (BFF) were released by CME Group on September 29, they were a big step forward in the crypto futures market. More than 31,498 options were moved on the first day of this new product, which set a new record for trading volume. Because of this, BFF is now the most successful start in the history of CME’s crypto futures products.
The Bitcoin Friday Futures product is made to appeal to a wide range of market players. It lets traders protect their capital or bet on how the price of Bitcoin will change in the short term. There are fifty-fifths of a bitcoin in each contract, and every Friday, they settle against the CME CF Bitcoin Reference Rate New York Variant (BRRNY).
With their unique weekly ending, BFF contracts give traders more freedom and the chance to connect with the market more often every Thursday after Wall Street markets close. Michael Harvey, Head of Franchise trade at Galaxy, talked about how important these contracts are and how they closely follow spot prices, which makes trade methods better for everyone.
The launch of BFF by CME is a smart reaction to the growing need for Bitcoin derivatives that are easier to get. The company first started selling Bitcoin futures in 2017 with the goal of attracting large buyers. The new BFF contracts, on the other hand, are smaller and last less time, which makes Bitcoin easy for more people to use.
As the world of digital assets changes, CME Group is still committed to making tools that make trade and availability easier. Giovanni Vicioso, Global Head of Cryptocurrency Products at CME, said that the launch’s success shows that people want more open and effective ways to handle Bitcoin risk in a regulated setting.
Galaxy and Marex, two large financial firms, completed the first block deal for the Bitcoin Friday Futures. This set the tone for what CME Group hopes will be a successful addition to its suite of bitcoin derivatives.
