CME Group, the world’s leading derivatives marketplace, announced plans to expand its digital asset suite with the launch of Bitcoin Volatility futures on June 1, pending regulatory review. These first-of-their-kind regulated futures contracts will allow investors to more precisely manage their market and portfolio positions by isolating their volatility risks from price direction.
“Crypto market participants are seeking regulated products that provide opportunities to gain digital assets exposure when markets move,” said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. “With our new Bitcoin volatility futures, traders will be able to invest or hedge against the future volatility of bitcoin, allowing them to access a critical new layer of risk management.”
Bitcoin Volatility futures will settle to the CME CF Bitcoin Volatility Index (BVX), a 30-day forward-looking measure of implied volatility. Rather than tracking price, the index is derived from real-time CME Bitcoin options order books to isolate market expectations. Published every second (7 a.m.–4 p.m. CT), the BVX offers a transparent, responsive underlying for precision volatility trading.
“As the digital asset complex continues to expand, Bitcoin volatility futures will be an important tool for market participants to better manage portfolio risk by directly trading volatility,” said David Schlageter, Manager Director and Head of Derivatives Sales at Morgan Stanley.
“The launch of Bitcoin Volatility futures contracts by CME Group marks another major step forward in the maturation of bitcoin as an asset suitable for investors of all stripes: from institutions to individuals,” said Sui Chung, CEO of CF Benchmarks. “For years, the CME CF Bitcoin Reference Rate (BRR) has served as the benchmark spot price, allowing regulated derivatives, ETFs and ETPs as well as lending markets to flourish. The CME CF Bitcoin Volatility Index extended that infrastructure into a new dimension: forward-looking bitcoin volatility. With the launch of these CFTC-regulated futures contracts, we anticipate a similar flourishing of regulated financial products that will enable investors to more precisely harness the unique characteristics of bitcoin and express views on forward-looking sentiment and manage risks that have, until now, been difficult to implement.”
SourCe: CME
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