TechFlow news, October 15 — According to CoinDesk, Sui Chung, CEO of CF Benchmarks, said the Bitcoin Friday Futures (BFF) contract launched by the Chicago Mercantile Exchange (CME) on September 30, 2024, has become an ideal instrument for news-driven traders. This weekly expiring contract is particularly suited for trading strategies betting on major U.S. economic data releases.
The BFF contract size is 1/50 of a bitcoin, with lower margin requirements designed to attract retail investors. The contract settles in cash every Friday at 16:00 New York time, tracking CF Benchmarks' Bitcoin Reference Rate New York (BRRNY). On its first day, trading volume exceeded 31,000 contracts, setting a record as CME’s most successful cryptocurrency futures launch to date.
Chung noted that compared to monthly contracts, weekly contracts are more directly influenced by specific events, allowing investors to express more precise views on how Bitcoin might react. Advantages of the BFF contract include tighter spreads relative to spot prices, lower roll costs, and more targeted trading strategies.
