CME to Launch Bitcoin Volatility Futures June 1

CME Group announced it will launch Bitcoin volatility futures on June 1 that reference the Bitcoin Volatility Index (BVX), subject to regulatory review. The contracts let traders hedge or speculate on the size of Bitcoin price swings rather than on price direction.

The BVX is a real-time benchmark introduced in 2024 that measures the implied volatility of Bitcoin options traded on CME. The exchange publishes the index every second between 7 a.m. and 4 p.m. Central Time on its trading days.

Volatility futures provide exposure to expected price swings without taking a directional position in Bitcoin. Market participants may use the contracts to hedge long Bitcoin holdings against rising volatility or to place bets on the market’s expectation for future price swings.

Giovanni Vicioso, CME’s global head of crypto products, described the contracts as ‘a critical new layer of risk management’ that will allow traders to invest in or hedge against future volatility in Bitcoin.

A filing in March proposed exchange-traded funds that would track BVX, reflecting demand for products tied to volatility rather than spot price.

CME expanded its crypto trading hours to round-the-clock trading on May 29, after previously operating with a weekend break. The nonstop hours began days before the volatility futures are scheduled to start.

Market context for the launch includes recent price moves. Bitcoin rose above $81,000 in late May after slipping near $60,000 this spring and reaching more than $126,000 last October. Some derivatives indicators have shown persistent selling pressure in certain contract types; the 30-day average funding rate for Bitcoin perpetual swaps was negative for 66 consecutive days.

CME, the world’s largest derivatives marketplace, noted the new futures will settle to BVX and operate alongside its existing Bitcoin derivatives, offering another way for clients to manage exposure to crypto-market moves.