The derivatives giant is rolling out CFTC-regulated contracts that let traders isolate Bitcoin volatility from price direction, settling to a new 30-day implied volatility benchmark.
CME Group plans to launch Bitcoin Volatility futures on June 1, further expanding its lineup of crypto risk management products for institutional clients.
The contracts will settle to the CME CF Bitcoin Volatility Index (BVX), a 30-day forward-looking gauge of implied volatility derived from real-time CME Bitcoin options order books. The index publishes every second between 7 a.m. and 4 p.m. CT, providing traders with a continuous, transparent reference for pure-vol exposure, separate from spot price moves.
“With our new Bitcoin volatility futures, traders will be able to invest or hedge against the future volatility of bitcoin,” Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, said in a press release.
Until now, crypto derivatives traders looking to express a view on volatility have largely had to construct it synthetically through options strategies, an approach that introduces directional and skew exposures, adding complexity. A standalone futures contract on a regulated venue offers a more direct instrument for funds running delta-neutral basis trades and structured yield strategies, and slots in alongside CME’s existing Bitcoin futures, options, and micro contracts.
Sui Chung, CEO and founder of CF Benchmarks, said the BVX extends the same benchmark infrastructure that underpins regulated Bitcoin ETFs and lending markets into forward-looking volatility, and predicted that a similar wave of regulated products will follow.
The launch caps a busy stretch of crypto expansion at CME. The exchange announced futures for Cardano, Chainlink, and Stellar earlier this year, followed by plans to move its crypto futures complex to 24/7 trading.
Bitcoin is up 7% over the past week, trading above $81,000 for the first time since January.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
