CME launches small Bitcoin ‘Friday Futures’ to attract retail investors

CME Group is set to introduce a new Bitcoin futures contract, dubbed Bitcoin Friday futures, on September 30, pending regulatory approval.

These smaller-sized contracts are designed to attract retail investors who may find existing offerings or the price of Bitcoin (BTC) too large and expensive. 

Priced at one-fiftieth of a Bitcoin, Bitcoin Friday Futures — or BFF contracts — will be cash-settled, meaning they won’t settle in crypto. They will expire every Friday, providing traders with a more accessible and flexible option for managing their Bitcoin exposure, according to a press release. 

The BFF contracts will be listed every Thursday for trading the following Friday, allowing participants to trade the nearest two Fridays at any given time. This new product aims to help investors mitigate weekend price volatility by closely tracking the spot price of Bitcoin.

Earlier on August 27, Nasdaq announced plans to list Bitcoin index options trading that will track the price of Bitcoin represented by the CME CF Bitcoin Real-Time index. 

Bitcoin contracts

Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, emphasized that these contracts allow institutional and retail traders to fine-tune their Bitcoin exposure on a regulated exchange. 

The contracts will settle to the CME CF Bitcoin Reference Rate New York Variant, ticker symbol ‘BRRNY,’ a benchmark also used by spot Bitcoin ETFs, enhancing liquidity and market efficiency during U.S. trading hours.

“By settling to the BRRNY, the benchmark used by leading spot bitcoin ETFs, traders will also benefit from growing liquidity and the ability to more efficiently capture market moves during U.S. hours,”

Giovanni Vicioso. 

Interactive Brokers, Plus500, and Webull have expressed support for the launch, highlighting the product’s flexibility, cost-effectiveness, and appeal to a broad range of investors—mainly retail investors.

This launch is part of CME Group’s ongoing efforts to expand its cryptocurrency derivatives offerings following the success of its existing Bitcoin futures and Micro Bitcoin futures products.

Earlier this year, the SEC approved spot Bitcoin ETF trading, which led many large financial institutions to file for their own spot Bitcoin ETFs.