When Do Bitcoin Futures Expire?

Bitcoin futures contracts have become a popular investment vehicle for those looking to speculate on the future price of Bitcoin. Understanding the expiration times for these futures is crucial for traders who want to manage their positions effectively.

Bitcoin futures contracts typically have specific expiration dates, which vary depending on the exchange offering the product. The expiration time is usually set to coincide with the end of a trading session or the end of a trading month, depending on the contract's terms.

For example, on the Chicago Mercantile Exchange (CME), Bitcoin futures contracts expire on the last Friday of the contract month. If that Friday is a holiday, the contract will expire on the preceding trading day. CME contracts usually expire at 4:00 p.m. London time, which is equivalent to 11:00 a.m. Eastern Time in the United States.

Other exchanges, like Bakkt, offer physically-settled Bitcoin futures. These contracts also expire on the last Friday of the month, but the expiration time can differ slightly, usually occurring at the end of the trading session of the underlying market. Bakkt’s Bitcoin futures typically expire at 8:00 p.m. Eastern Time on the expiration date.

It is essential to note that different exchanges might have different rules for their futures contracts, so traders should always check the specific details for the exchange they are trading on. Some exchanges may even offer weekly or quarterly futures contracts, adding to the complexity.

In addition to understanding when the contracts expire, traders must also be aware of the last trading day. This is the final day you can trade the contract before it expires, and it is typically one business day before the official expiration date. After this point, the contract will either be settled in cash or physically, depending on the terms of the contract.

Here is a summary of key expiration times for Bitcoin futures on major exchanges:

Exchange	Expiration Day	Expiration Time
CME	Last Friday of the month	4:00 p.m. London Time (11:00 a.m. ET)
Bakkt	Last Friday of the month	8:00 p.m. ET
CBOE	Last Wednesday of the contract month	4:15 p.m. ET

Understanding these expiration times is vital for traders who want to avoid unexpected surprises, like being forced into settlement or rolling over positions at unfavorable times. It’s also crucial for those using futures as part of a hedging strategy, as the expiration can significantly impact the effectiveness of the hedge.

For those who are actively trading or considering trading Bitcoin futures, staying informed about the expiration schedules on the platforms you use is critical. Missing an expiration date can lead to either forced settlement or an undesired rollover, both of which can impact your trading strategy and profitability.

Ultimately, the best practice is to regularly check the specific exchange rules and the contract details for any Bitcoin futures you are trading. This will ensure that you are fully prepared for expiration dates and can manage your positions accordingly.