CME Plans Bitcoin Volatility Futures Launch June 1

CME Group, the Chicago-based derivatives exchange, plans to launch Bitcoin volatility futures contracts on June 1, pending regulatory approval from the Commodity Futures Trading Commission.

The cash-settled contracts, trading under the ticker BVI, will settle to the CME CF Bitcoin Volatility Index, known as BVX. This index measures 30-day implied volatility derived from real-time order book data of CME's Bitcoin and Micro Bitcoin options markets. Each contract carries a multiplier of $500 times the BVX index value and will clear through CME's existing U.S.-regulated framework. The index updates every second during Chicago trading hours, from 7 a.m. to 4 p.m. Central Time.

Unlike traditional Bitcoin futures that track price direction, these contracts allow traders to gain exposure to or hedge against expected volatility without betting on whether Bitcoin's price will rise or fall. "Market participants are seeking regulated products that offer exposure to market moves," said Giovanni Vicioso, CME Group's global head of cryptocurrency products. "With our new Bitcoin volatility futures, traders will be able to invest in or hedge against the future volatility of Bitcoin, allowing...