CME is letting traders bet on bitcoin volatility, not price, and two firms have already placed bets
CME launched bitcoin volatility index futures, with DV Chain and Monarq Asset Management executing the first block trades. The contracts track the CME CF Bitcoin Volatility Index (BVX), which measures expected bitcoin volatility over four weeks. They let traders express a view on how much BTC may move, rather than just its direction, enabling new hedging and portfolio strategies on regulated venues. This can be useful around events that may spark sharp price swings, such as inflation releases. Monarq called the product a meaningful expansion of regulated volatility tools for institutional investors. The launch adds to CME’s crypto lineup of bitcoin and ether futures and options. CME’s crypto derivatives activity has grown to about 266,900 contracts year-to-date, up 38% year over year, with average daily open interest around 274,500 contracts, up 18%.
