CME Group plans to launch new bitcoin volatility futures on June 1, pending regulatory approval, allowing traders to hedge or speculate on price fluctuations rather than just asset direction.
Key Points
- The new contracts will track the CME CF Bitcoin Volatility Index (BVX) rather than the underlying price of bitcoin.
- Contracts are designed to measure market expectations for bitcoin price swings over a four-week period.
- This product aims to provide U.S. institutions with a regulated, onshore alternative to existing offshore volatility derivatives.
- The launch expands CME’s existing suite of bitcoin futures and options, which have seen significant institutional adoption since 2017.