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The CME Bitcoin Friday Futures are seeing a significant rise in institutional demand. This is a clear indicator of growing interest in digital assets. Since launching in late September, over 380,000 contracts have been traded, averaging about 12,400 contracts daily.
The Chicago Mercantile Exchange (CME) has reported this increase in activity for its new Bitcoin Friday Futures (BFF). It highlights the growing interest from institutions and improved access for retail investors in the digital asset market. Since their launch on September 30, the BFF contracts have traded for more than $500 million. Giovanni Vicioso, CME Group's Global Head of Cryptocurrency Products, shared that the average daily volume is 12,400 contracts, which translates to about $16.9 million in notional value.
In a recent chat with The Block, Vicioso mentioned that open interest has averaged 7,900 contracts daily, totaling $10.5 million. It even peaked at 26,000 contracts on November 6, the day after the U.S. elections.
To make Bitcoin futures more accessible, the BFF contracts are designed to tackle affordability issues tied to Bitcoin’s rising value. Priced at 1/50th of a Bitcoin, these contracts cater to both institutional investors and active retail traders. Vicioso explained, “With Bitcoin’s increased value, many participants feel priced out of the market. BFF offers a flexible, low-cost way to gain market exposure.”
A key feature of BFF is its weekly settlement cycle. This is different from 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 linked to the CME CF Bitcoin Reference Rate New York Variant (BRRNY). Vicioso pointed out, “This shorter duration tracks Bitcoin’s price more closely and helps traders manage event-driven volatility more effectively.”
The shorter durations and smaller contract sizes seem to be attracting interest from both retail and institutional participants. Vicioso noted, “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 market.”