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CME to launch June 1
CME Group plans to launch Bitcoin Volatility futures on June 1, pending regulatory review, as the exchange expands its digital asset suite with a regulated product tied to expected Bitcoin price swings. The contracts are designed to let traders focus on volatility rather than Bitcoin’s spot price, and they will settle against the CME CF Bitcoin Volatility Index (BVX). CME said the futures will operate within the Commodity Futures Trading Commission framework, keeping the product inside CME’s clearing system. “Crypto market participants are seeking regulated products that provide opportunities to gain digital assets exposure when markets move,” said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group.
“announced plans to expand its digital asset suite with the launch of Bitcoin Volatility futures on June 1, pending regulatory review”
BVX measures 30-day swings
The Bitcoin Volatility futures will settle to the CME CF Bitcoin Volatility Index (BVX), described as a 30-day forward-looking measure of implied volatility. The BVX is derived from real-time CME Bitcoin options order books, and it is published every second between 7 a.m. and 4 p.m. CT on CME trading days. In the lead-up to the launch, CoinCentral reported CME stock fell as the exchange prepared the new Bitcoin volatility product for June, with CME closed at $286.82 down 1.20% and later slipped to $285.00 in pre-market trading. “Bitcoin volatility futures will be an important tool for market participants to better manage portfolio risk by directly trading volatility,” said David Schlageter, Managing Director and Head of Derivatives Sales at Morgan Stanley.
Institutional risk management
The launch is framed as part of a broader push toward regulated crypto derivatives and institutional risk management, with CME positioning the product as a way to isolate volatility risk from price direction. Banque de France’s analysis links the growth of institutional involvement in crypto markets to the U.S. authorization of spot crypto-asset ETFs, noting that investors institutionnels invested via ETF Bitcoin launched in January 2024 and ETF Ether in June 2024. It also states that “En 2024, près de 2000 investisseurs institutionnels étaient” exposed to ETF Bitcoin, and that institutional investors represented “environ 30% du marché à fin 2024.” In that context, the CME volatility futures are presented as another regulated tool for investors seeking exposure to market movements, with Sui Chung, CEO of CF Benchmarks, saying the launch marks “another major step forward in the maturation of bitcoin as an asset suitable for investors of all stripes: from institutions to individuals.”
“En 2024, près de 2000 investisseurs institutionnels étaient, pour compte propre ou pour le compte de clients, exposés aux ETF Bitcoin”
