Introduction of Options on Bitcoin Friday Futures by CME Group
The Chicago Mercantile Exchange Group has announced an exciting development in the world of cryptocurrency trading: the introduction of options on Bitcoin Friday Futures (BFF), set to launch on February 24, pending regulatory approval. This initiative follows the remarkable success of BFF, which has quickly established itself as CME Group’s most popular cryptocurrency offering.
Since its debut on September 29, BFF has witnessed substantial trading activity, with over 775,000 contracts exchanged. On average, this translates to about 9,700 contracts traded daily, with a notable 44% of these transactions occurring outside of regular U.S. trading hours. Each BFF contract represents one-fiftieth of a Bitcoin, contributing to an impressive total volume of $1.63 billion since its launch.
These new options will be financially settled and will expire every business day from Monday to Friday, thus equipping traders with enhanced risk management tools. According to Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, the introduction of these contracts is expected to provide investors with a more efficient means to manage their Bitcoin exposure.
Vicioso stated, “We are pleased to offer these new options that provide traders with even greater precision to manage short-term Bitcoin price risk. Building on the success of our Bitcoin Friday futures, the smaller size of these contracts, along with daily expiries, offer market participants a capital-efficient toolset to effectively adjust their Bitcoin exposure.”
