On Tuesday, CME, the leading derivatives marketplace globally, revealed its intention to introduce Bitcoin volatility futures. These new financial instruments will enable traders to wager on the extent of Bitcoin’s price fluctuations without directly speculating on its price.
The upcoming product is set for release on June 1, contingent upon regulatory approval. As stated by Giovanni Vicioso, CME’s global head of crypto products, “Our innovative Bitcoin volatility futures empower traders to invest or hedge against future Bitcoin volatility, providing a vital new dimension of risk management.”
This year has seen a surge in the popularity of financial tools tracking Bitcoin volatility, driven by both institutional and retail investors looking for advanced methods to manage long-term Bitcoin investments. In March, CoinShares filed for Wall Street’s inaugural Bitcoin volatility ETFs.
These ETFs are based on CME’s Bitcoin Volatility Index (BVX), introduced in 2024 as a real-time measure of the volatility within Bitcoin options contracts traded via CME. The BVX reflects market expectations about whether Bitcoin’s price will experience significant changes or maintain stability.
CME’s new Bitcoin volatility futures will also be linked to the BVX, updated every second from 7 a.m. to 4 p.m. CT on trading days. Earlier this year, CME announced its plan to extend crypto product trading hours to round-the-clock operations, aligning with other Wall Street firms responding to the continuous nature of digital asset markets. Previously, CME’s crypto products traded for 23 hours daily, pausing from Friday afternoon through Sunday evening.
The transition to nonstop crypto trading is scheduled for May 29, just days before the planned debut of Bitcoin volatility futures.
Recently, Bitcoin has shown signs of recovery, climbing above $81,000 on Tuesday—its highest point since January. After reaching nearly $126,000 in October last year, it dipped close to $60,000 this spring.