YEREVAN (CoinChapter.com) — CME Group Inc. is introducing a brand new Bitcoin futures contract particularly geared toward retail traders. Named Bitcoin Friday Futures (BFF), these contracts are smaller, priced at one-Fiftieth the dimensions of 1 Bitcoin. This product is designed to make Bitcoin futures extra accessible to those that discover the present choices too costly. The launch is scheduled for September 30, pending regulatory approval.

Giovanni Vicioso, CME Group’s world head of cryptocurrency merchandise, said,

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

The BFF contracts provide a extra inexpensive possibility for retail traders.

CME’s New Bitcoin Friday Futures Decrease Entry Prices for Retail Buyers

CME’s current Bitcoin and Ether futures, together with the “micro” variations launched in 2021, have seen elevated curiosity. The micro-Bitcoin futures, that are one-tenth of a Bitcoin, skilled a 200% rise in quantity this yr in comparison with 2023. Nonetheless, as Bitcoin’s price has climbed, even these smaller contracts have turn into much less accessible to some retail traders.

The BFF contract addresses this by lowering the monetary dedication required. For instance, one BFF contract gives publicity to one-Fiftieth of a Bitcoin, at the moment valued at round $1,200. Buyers can put up a margin of roughly $300 to realize full publicity.

CME’s Smaller Bitcoin Futures Intention to Increase Accessibility for Retail Buyers

Bitcoin has seen vital good points not too long ago. Final yr, the cryptocurrency surged by 157%, partly as a consequence of expectations surrounding exchange-traded funds (ETFs) that maintain Bitcoin straight. These funds launched in January, drawing in web inflows of about $18 billion. In 2024, Bitcoin has risen one other 50%.

Vicioso famous that smaller-sized contracts would enhance the tradeability and accessibility of Bitcoin futures for extra retail traders.

“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 mentioned.

“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.”

CME’s BFF Contracts: A New Accessible Possibility for Retail Buyers

The brand new Bitcoin Friday Futures (BFF) will checklist each Thursday evening for a Friday commerce date. Buyers can commerce the closest two Fridays at any time. The Friday expiration is meant to intently monitor Bitcoin’s spot price, which trades across the clock, seven days per 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 goals to supply retail traders with a extra manageable entry level into the Bitcoin futures market.