Bitrabo Editorial
CME Group is introducing a smaller Bitcoin futures contract called “Bitcoin Friday Futures” (BFF) to provide retail investors with more affordable access to BTC futures. The BFF contract will be one-50th the size of a full BTC, priced at around $1,200 per contract, making it more accessible than CME’s existing Bitcoin futures.
CME Launches ‘BFF’ Contracts
Global head of cryptocurrency products at CME Group, Giovanni Vicioso, highlighted the growing demand for scaled-down investment options among retail traders. The success of CME’s micro BTC and Ethereum futures has demonstrated increased retail engagement, with a 200% surge in micro-Bitcoin futures volumes this year compared to 2023.
The new BTC Friday futures aim to offer greater accessibility and affordability to retail participants. The BFF contracts, set to launch on September 30th pending regulatory approval, playfully refer to “Best Friend Forever,” emphasizing their appeal to retail traders.
In a similar move, Nasdaq is seeking SEC approval to introduce options contracts linked to a Bitcoin index, as reported by Reuters. These options would enable investors to hedge price movements and gain exposure to Bitcoin, complementing existing Bitcoin-related ETFs and futures products in the market.
Nasdaq Aims for Bitcoin Index Options
Nasdaq’s proposed BTC Index Options are designed to track BTC futures and options available on CME Group exchange, providing traders with new opportunities in the crypto derivatives market. The filing comes amidst SEC’s hesitancy to approve options tied to recently launched spot Bitcoin ETFs, leading traders to explore alternative BTC-linked products.
While the cryptocurrency market sees fluctuations, Bitcoin has retraced to $61,600 after reaching a one-month high of $65,000, reflecting a 3% drop in the 24-hour period.
Image source: DALL-E, chart from TradingView.com