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CME Group to Launch Bitcoin Options in February

Coin WorldThursday, Jan 30, 2025 7:50 am ET

1min read

CME Group, a leading global derivatives marketplace, has announced plans to launch options on its Bitcoin Friday Futures (BFF) contracts in February, pending regulatory approval. This move is set to provide traders with more risk management tools and enhance the efficiency of bitcoin price risk management.

The new contracts, which will be financially settled, are designed to expire every day of the business week, from Monday to Friday. This daily expiration feature, along with smaller contract sizes, aims to offer investors a more precise and capital-efficient toolset to adjust their bitcoin exposure.

CME Group's BFF has proven to be a successful cryptocurrency launch since its inception on Sept. 29. With over 775,000 contracts traded and an average daily volume of 9,700 contracts, the BFF has attracted significant interest from traders. Notably, 44% of contracts were traded during non-U.S. hours, indicating the global appeal of these contracts.

Giovanni Vicioso, CME Group's Global Head of Cryptocurrency Products, expressed his enthusiasm about the new options, stating that they will provide traders with greater precision in managing short-term bitcoin price risk. The smaller contract sizes and daily expirations are expected to offer investors a more efficient toolset for adjusting their bitcoin exposure.

This development is a testament to CME Group's commitment to expanding its cryptocurrency offerings and catering to the evolving needs of market participants. As the cryptocurrency market continues to grow and mature, the introduction of options on BFF contracts is expected to further enhance liquidity and risk management opportunities for traders.

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