These financially settled contracts will expire every day of the business week, Monday through Friday, providing traders with more risk management tools.
The Chicago Mercantile Exchange Group (CME Group) announced on Friday that it will introduce options on its Bitcoin Friday Futures (BFF) starting on Feb. 24, pending regulatory approval.
The BFF was CME Group's most successful cryptocurrency launch to date, according to a press release. Since launching on Sept. 29, more than 775,000 contracts have been traded. The average daily volume was 9,700 contracts, with 44% of contracts being traded during non-U.S. hours. One contract is worth one-50th of one BTC, and the BFF has generated $1.63 billion in volume since its launch.
These financially settled contracts will expire every day of the business week, from Monday to Friday, giving traders access to additional risk management tools.
According to Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, these contracts will have smaller contract sizes and daily expirations, giving investors a more efficient toolset to adjust their bitcoin exposure.
"We are pleased to offer these new options that provide traders with even greater precision to manage short-term bitcoin price risk,” Vicioso said, regarding the success of the Bitcoin Friday futures. “The smaller size of these contracts, along with daily expiries, offer market participants a capital-efficient toolset to effectively adjust their bitcoin exposure."
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