Overview
- CME plans to list Bitcoin volatility futures that settle to the CME CF Bitcoin Volatility Index, with a June 1 launch targeted subject to CFTC approval.
- The BVX gauges expected 30-day moves in Bitcoin using live data from CME’s Bitcoin options order books, so traders can take views on volatility rather than price direction.
- Each contract is sized at $500 times the BVX level, and the index updates every second during stated trading hours, according to product details reported by industry outlets.
- CME says the futures expand its crypto derivatives lineup and add a new hedging tool for institutions, a use case Morgan Stanley’s derivatives team also highlighted.
- Offshore platforms like Deribit offer volatility products, but a CFTC-regulated contract could open access for U.S. firms and help build a deeper market similar to how VIX-linked trading grew.