CME Group announced on May 5 that it plans to launch bitcoin volatility futures on June 1, 2026, pending regulatory review. The exchange says the contracts would let traders take positions on expected bitcoin price swings without making a directional bet on the cryptocurrency’s price.
How the planned contracts would work
CME says the futures would settle to the CME CF Bitcoin Volatility Index (BVX), a forward-looking measure of 30-day implied volatility derived from real-time CME bitcoin options order books. The index is published every second between 7 a.m. and 4 p.m. Central Time on the marketplace’s trading days.
The planned cash-settled contracts are expected to trade under the ticker BVI. CME’s announced terms specify a contract size of $500 multiplied by the BVX index value.
Giovanni Vicioso, CME’s global head of cryptocurrency products, said the futures were intended to give market participants another way to invest in or hedge against bitcoin’s future volatility.
An addition to bitcoin derivatives
CME launched bitcoin futures in December 2017. The U.S. Securities and Exchange Commission approved the listing and trading of spot bitcoin exchange-traded product shares in January 2024. Options on BlackRock’s iShares Bitcoin Trust ETF (IBIT) began trading on November 19, 2024.
Sam Gaer, chief investment officer of Monarq Asset Management’s Directional Fund, described demand for IBIT options as evidence of institutional interest in more advanced bitcoin derivatives. He viewed volatility futures as a natural next step for institutions seeking to manage risk beyond price direction.
Bitcoin volatility products already exist on crypto-native platforms, including Deribit’s BTCDVOL futures. CME’s proposed launch would add another venue for trading that exposure.
A comparison with equity volatility markets
In equity markets, products linked to the Cboe Volatility Index (VIX) provide exposure to expected volatility. The VIX measures expected S&P 500 volatility over 30 days using options prices; it does not predict whether the index will rise or fall.
Gaer drew a comparison with the development of products built around VIX futures. He said clearly defined and readily available information about CME’s contract construction and composition could support a broader bitcoin volatility market.
