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Retail investors are competing for more access to derivatives trading, which amplifies wagers in the unpredictable market. Conventional financial institutions in the US are capitalising on the crypto boom following the historic introduction of Bitcoin exchange-traded funds (ETF) earlier this year
Numerous platforms, including options and futures contracts, are available to institutional investors in the US for trading cryptocurrency derivatives.
They can access futures contracts that demand substantial collateral or over-the-counter options trading desks where players enter into bilateral agreements.
Although ETFs based on futures are available, they might not be the best fit for novice traders due to their high expense ratios.
Partially because of this, CME Group has introduced a smaller Bitcoin futures product.
These weekly contracts, known as Bitcoin Friday futures, are priced at one-fiftieth of the size of 1 BTC, allowing investors to save money compared to purchasing existing offers.
The product is scheduled to be released on September 30th with a monetary settlement.
🗓️ Save the date: your new BFF is coming.
— CME Group (@CMEGroup) August 27, 2024
Beginning September 30,* our smallest and most accessible Bitcoin contract yet, Bitcoin Friday futures (BFF), is available at 1/50 the size of a #bitcoin.
Find out more ➡️ https://t.co/4058HbsDDu pic.twitter.com/FkXhkjfdkj
This basically implies that a tiny investor may obtain complete exposure to a $1,200 BFF contract with just about $300 in margin.
All contracts are listed on Thursday nights (New York time) with a trading date on Friday.
According to CME, the expiration date will allow investors to follow the movement of Bitcoin spot prices better.
Even while the offering isn't as robust as some of the products offered overseas, it's a step in the right direction for big US-regulated institutions to make crypto derivatives more accessible to ordinary investors nationwide.
Among the most-traded items utilized to increase wagers by so-called "degen" retail traders worldwide are perpetual futures contracts on Binance, which may be settled more often without an expiry.
In contrast, Deribit holds the majority of the crypto-options market.
Following a string of collapses in the last several years, CME's action indicates that the variety of chances for US retail crypto traders is again growing.
The dangers, though, are growing as a result of the many things that may go wrong while applying leverage.
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Blockcast
A year after our previous interview with Yat Siu, Blockhead catches up with the Animoca Brands founder in Bali at Coinfest 2024 to find out how TradFi adoption is impacting blockchain gaming and the metaverse.
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Events
All Day Crypto Bash (Singapore, 17 September 2024)
Blockhead is partnering with Draper Startup House to bring you an exclusive, action-packed day at on 17 September, during Token 2049 week in Singapore.
This event, co-organized alongside Draper Nation, Hyperglade, SUN ZU Lab, Metacamp and Clubout, is an opportunity to connect, learn, and chill with the best in the blockchain, crypto, and web3 community!
Apart from panel discussions, fireside chats and workshops, there'll be food, drinks, and lots of time for networking. Bring a change of clothes if you're keen on participating in the ice baths and other wellness activities!
The event will run from 9 am to 8 pm on Tuesday, 17 September. Find a rundown of activities and registration details here.
Daemon Day (Singapore, 17 September 2024)
Join Blockdaemon on 17th September 2024 at Pan Pacific, Singapore for a day of groundbreaking discussions and networking opportunities with key players in the space. Event partners include AWS and Zodia Custody, while the event supporters include Liquid Collective, M2, MU Digital, Titanium Ventures, and Xangle.
For more info, click here.
Token2049 (Singapore, 18-19 September 2024)
Don't miss out on early bird ticket prices, until July 31! Use Blockhead's exclusive discount code BLOCKHEAD10 for a further 10% off.
All That Matters (Singapore, 16-18 September 2024)
The 19th All That Matters is the gateway to the APAC Music, Sports, Gaming, Marketing, Web3, Arts and Entertainment industries.
Conference by day and live music festival by night, ATM is Asia’s premiere ‘Business 2 Business 2 Fan’ event experience bringing together world class speakers with more than 2,000 senior executives.
Get your tickets now with Blockhead's 15% off code: ATM24BLOCKHEAD15
GeckoCon (Bangkok, 11 November 2024)
GeckoCon returns, and this year we're diving into the revolutionary world of Web3 Gaming! Discover how the fusion of blockchain and traditional gaming is creating a whole new entertainment layer.Don't miss out—visit CoinGecko now to secure your spot in our first ever Hybrid Conference set to take place in Bangkok, Thailand. Or from the comforts of your home!
Get your tickets now with Blockhead's 40% code: BHGC24
[Limited to 30 redemptions, expires 12 September 2024]
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