finance
CME Group Plans to Launch Bitcoin Volatility Futures on June 1
The contracts will reference the CME CF Bitcoin Volatility Index, allowing traders to bet on or hedge bitcoin's expected price swings over the next four weeks. The move builds on CME's bitcoin futures launched in December 2017 and follows the January 2024 debut of 11 spot bitcoin ETFs.
May 9, 11:14 AM·2m read1 source
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CME Group plans to launch bitcoin volatility futures on June 1 pending regulatory approval. The new contracts will refer to the CME CF Bitcoin Volatility Index, or BVX, which represents the market's expectations for bitcoin volatility over the next 4 weeks.
The contracts will give traders a regulated way to invest in or hedge against future bitcoin volatility without taking a direct view on price direction.
Giovanni Vicioso, global head of cryptocurrency products at CME Group, said crypto market participants are seeking regulated products that provide opportunities to gain digital assets exposure when markets move. "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," Vicioso said.
CME Group's bitcoin futures went live in December 2017.
Those contracts have since become a preferred instrument for institutions seeking directional exposure and arbitrage opportunities, generating billions in trading volume and open interest. The institutionalization of bitcoin accelerated with the debut of 11 spot-listed bitcoin ETFs in January 2024.
That was followed by rapid growth in options tied to BlackRock's IBIT, whose open interest has surpassed that of offshore venues such as Deribit.
U.S. institutions. Volatility exposure onshore has instead been achieved mainly through options and synthetic structures.
Sam Gaer, chief investment officer of Monarq Asset Management's Directional Fund, said the surge in IBIT options open interest signals strong institutional demand. "IBIT options open interest surpassing Deribit is a clear signal of institutional demand, and vol futures are the natural next step," Gaer told CoinDesk.
