CME Group is getting ready to launch something new in the Bitcoin trading scene: Bitcoin Friday Futures (BFF). Starting on September 30, traders will have a new option for handling Bitcoin.Â
These futures are smaller in size—each contract represents 1/50th of a Bitcoin—and they expire every Friday at 4:00 p.m. ET, syncing with the CME CF Bitcoin Reference Rate New York Variant.Â
This weekly setup could help traders manage Bitcoin’s price swings, especially over the weekend when things tend to get unpredictable.
And because they’re trading on a platform regulated by the CFTC, there’s an added layer of transparency. But let’s not pretend that this is some game-changing product—it’s another tool for those who are already deep in the Bitcoin market.
CME has been inching their way into the crypto space since 2017. That’s when they first launched Bitcoin futures, right after Cboe did. The CFTC gave them the green light, which allowed them to offer a regulated environment for Bitcoin trading.
Back then, CME pegged its Bitcoin futures to the CME CF Bitcoin Reference Rate (BRR), which pulls in prices from multiple major exchanges.Â
The idea was to create a reliable benchmark for pricing, something that was sorely needed in the early days of crypto trading.
After their initial foray into Bitcoin, CME expanded its offerings. In 2019, they introduced Micro Bitcoin futures, which are even smaller, at 1/10th of a Bitcoin.Â
This was meant to attract retail traders and smaller investors—people who might not have the deep pockets needed for full-sized contracts.Â
By 2020, CME added options on Bitcoin futures, giving traders more ways to manage risk or bet on price movements. In 2021, CME moved beyond Bitcoin and introduced Ether futures, reflecting the growing interest in Ethereum.
By then, Ethereum was becoming a major player in the market, and the company saw the opportunity to offer another product for traders who wanted exposure to the second-largest cryptocurrency.
Over the next couple of years, CME’s crypto trading volumes climbed. In 2022, they reported that the average daily volume for Bitcoin futures hit 23,000 contracts.
