CME Group Unveils Bitcoin Friday Futures (BFF) to Lower Entry Costs for Retail Investors

CME Group Inc. is introducing a new Bitcoin futures contract specifically aimed at retail investors. Named Bitcoin Friday Futures (BFF), these contracts are smaller

CME Group (NASDAQ: CME) is introducing a new type of Bitcoin futures contract that will be smaller in size and priced at 1/50th the value of one Bitcoin. These contracts are being designed to make Bitcoin futures more accessible to retail investors, especially those who find the current offerings too expensive.

The launch of these new contracts is still subject to regulatory approval, but it is expected to take place on September 30th.

According to Giovanni Vicioso, CME Group’s global head of cryptocurrency products, these smaller contracts are being introduced to cater to the needs of retail investors who are actively trading.

“When you look at, say, a retail individual, active trader, they’re looking for something smaller.”

CME’s Existing Bitcoin Futures Contracts Attract Interest from Retail Investors

CME’s existing Bitcoin and Ether futures, along with the “micro” versions that were introduced in 2021, have seen increasing interest from retail investors.

In 2024, the micro-Bitcoin futures, which are one-tenth of a Bitcoin, experienced a 200% increase in volume compared to 2023.

However, as Bitcoin's price has risen, even these smaller contracts have become less accessible to some retail investors.

The new BFF contract aims to address this issue by reducing the financial commitment required.

For example, one BFF contract will offer exposure to 1/50th of a Bitcoin, which is currently valued at around $1,200. To gain full exposure, investors will be able to post a margin of approximately $300.

CME’s Smaller Bitcoin Futures Contracts Designed to Boost Retail Access

Bitcoin has seen strong gains in 2024. The cryptocurrency surged by 157% last year, partly due to expectations surrounding exchange-traded funds (ETFs) that hold Bitcoin directly. These funds launched in January and attracted net inflows of about $18 billion. In 2024, Bitcoin has risen another 50%.

According to Vicioso, smaller-sized contracts will increase the tradeability and accessibility of Bitcoin futures for more retail investors.

“Certainly introducing that smaller-sized contract will make that contract a little bit more tradeable, more accessible for a larger swath of retail participants,” he said.

“It’s going to require a smaller capital outlay to get exposure. That was one of the driving forces behind this—it was really size.”

New CME BFF Contracts Offer Accessible Option for Retail Investors

The new Bitcoin Friday Futures (BFF) will be listed every Thursday night for a Friday trade date. Investors will be able to trade the nearest two Fridays at any time.

The Friday expiration is designed to closely track Bitcoin's spot price, which trades around the clock, seven days a week.

“When you consider a product that we’re launching that should have retail appeal, I personally love that BFF moniker,” Vicioso added.

The BFF contract is being introduced to provide retail investors with a more manageable entry point into the Bitcoin futures market.

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