CME Bitcoin Friday Futures experience notable increase in institutional demand
Quick Take
- CME’s Bitcoin Friday Futures weekly contracts have seen a significant uptick in institutional interest, reflecting growing demand for exposure to the digital asset market.
- Since their launch in late September, over 380,000 CME Bitcoin Friday Futures contracts have traded, reaching a daily average volume of 12,400 contracts.
The Chicago Mercantile Exchange (CME) has reported a notable increase in activity for its new Bitcoin Friday Futures (BFF) weekly contracts, underscoring growing institutional interest and enhanced retail access in the digital asset market.
Since their launch on September 30, over 380,000 BFF contracts—worth more than $500 million—have traded, and the product has achieved an average daily volume of 12,400 contracts, representing $16.9 million in notional value, according to CME Group Global Head of Cryptocurrency Products Giovanni Vicioso.
Speaking to The Block, Vicioso said that open interest has averaged 7,900 contracts daily, totaling $10.5 million, and peaked with 26,000 contracts traded on November 6, the day after the U.S. election.
Making bitcoin futures more accessible
Bitcoin Friday Futures, CME’s smallest bitcoin-based contract, is designed to address affordability and accessibility challenges posed by bitcoin’s increasing notional value. Priced at 1/50th of a bitcoin, the BFF contracts cater to both institutional investors and active retail traders,
"Given the increased notional value of bitcoin, many participants have found themselves priced out of the market, so BFF provide a flexible, low-cost way to gain market exposure," Vicioso said.
A key differentiator for BFF is its weekly settlement cycle, which contrasts with the monthly cycle of traditional bitcoin futures. Contracts are listed every Thursday at 6:00 p.m. ET for trading on Fridays, with cash settlements tied to the CME CF Bitcoin Reference Rate New York Variant (BRRNY).
"This shorter duration tracks bitcoin’s price more closely, and allows traders to manage event-driven volatility more effectively,” Vicioso explained. The shorter durations and reduced contract size appear to be driving interest among both retail and institutional market participants.
"We’ve seen significant engagement from institutions looking for tools to manage short-term volatility, as well as retail traders exploring low-cost, flexible ways to enter the bitcoin derivatives space," Vicioso said.
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