CME Group Offers BTIC for Managing Basis Risk in Bitcoin Futures

CME Group has introduced Basis Trade at Index Close (BTIC) functionality for Bitcoin futures traders, allowing them to manage basis risk as contracts approach expiration.

BTIC links futures execution directly to the CME CF Bitcoin Reference Rate and is structured across three regional sessions: London, New York, and APAC. The minimum price increment for BTIC trades is $1 per Bitcoin on the agreed basis, while block trades have a minimum size of 5 contracts.

The tool addresses basis risk, which is the gap between a futures contract's price and the spot price of the underlying asset. By letting traders lock in a spread to the reference rate, BTIC reduces guesswork about where the rate will land.

Institutional players can use BTIC to match their futures exposure precisely to the CME CF Bitcoin Reference Rate, which is used as a benchmark for their performance.