CME Launches Bitcoin Volatility Futures June 1
CME Group announced Bitcoin volatility futures launching June 1. The product lets traders hedge against price swings without taking a directional bet on Bitcoin itself.
Key Takeaway
Traders can now hedge Bitcoin's wild swings without guessing if price goes up or down.
CME Group will launch Bitcoin volatility futures on June 1, pending regulatory review.
The product tracks the intensity of Bitcoin price swings, not the direction. Traders can hedge against wild fluctuations without taking a position on whether Bitcoin rises or falls. CME Global Head of Crypto Products Giovanni Vicioso said the futures allow investors to access a layer of risk management by investing or hedging against Bitcoin's future volatility.
The futures are based on the CME Bitcoin Volatility Index, which the exchange launched in 2024. BVX measures whether the market expects wild price swings or steady prices by tracking volatility of Bitcoin options contracts traded on CME. The index publishes updates every second between 7 a.m. and 4 p.m. Central Time on trading days.
Bitcoin traded above ₱4,985,903 ($81,000) when CME announced the product. The price peaked above ₱6,709,425 ($109,000) in January 2025 before falling close to ₱3,693,261 ($60,000) during spring. CoinShares filed for Wall Street's first Bitcoin volatility ETFs in March, tracking the same CME index.
CME will expand to 24/7 crypto trading on May 29.
This article was written based on reporting from Decrypt.
