- CME plans to launch Bitcoin Volatility futures on June 1.
- The BVI contracts will settle in cash against the BVX index, which tracks 30-day implied Bitcoin volatility from CME options data.
CME Group is preparing to launch Bitcoin Volatility futures on June 1, pending regulatory review, as demand grows for regulated crypto risk-management products. The new contracts will give traders direct exposure to expected Bitcoin price swings rather than Bitcoin’s spot price direction.
The contracts will settle against the CME CF Bitcoin Volatility Index, known as BVX. The index measures 30-day forward-looking implied volatility using real-time CME Bitcoin options order books. CME designed the product for market participants who want to hedge sharp moves or trade volatility as a separate market factor.
The planned launch adds a new layer to CME’s digital asset product suite. Traditional Bitcoin futures track whether Bitcoin moves higher or lower. Bitcoin Volatility futures instead focus on how strongly the market expects Bitcoin to move over the next 30 days.
CME said the contracts will help traders isolate volatility risk from price direction. That structure matters for institutional investors who already manage portfolios through futures, options, and other hedging products. It also gives professional desks a regulated route to trade Bitcoin volatility without holding spot Bitcoin or taking a directional futures position.
Bitcoin remains one of the most active digital assets in institutional markets. However, its price swings continue to create risk for funds, asset managers, and trading firms. A volatility futures product allows these participants to manage exposure when market conditions turn unstable.
CME Expands Regulated Bitcoin Risk Tools
The Bitcoin Volatility futures will trade under the ticker BVI. Each contract will have a value of $500 times the BVX index level, and settlement will be in cash. That means traders will not need to deliver or receive Bitcoin when the contract expires.
The BVX index publishes every second between 7 a.m. and 4 p.m. Central Time. It uses CME Bitcoin and Micro Bitcoin options order books to reflect market expectations for future volatility. The index does not track Bitcoin’s price level, but it captures the market’s view of expected movement.
Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, said:
“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.”
CME launched its first Bitcoin futures in December 2017. Since then, its crypto derivatives business has grown across Bitcoin, Ethereum, and other digital asset-linked contracts.Â
CME is expected to launch 24/7 crypto futures and options trading on May 29, pending regulatory approval. The move will extend trading on CME Globex through weekends, with only a two-hour weekly maintenance window. The change will give institutions more room to hedge Bitcoin and other digital asset risks.
Bitcoin price traded near $81,400 on May 6 after rising over 5% in the last 7 days. Its market cap stood near $1.62 trillion, while 24-hour volume was about $39.32 billion.
