JUST IN: Derivatives Market Giant CME Group Makes a Major Bitcoin Announcement—Pointing to June 1

CME Group, one of the world’s largest derivatives markets, is preparing to expand its range of cryptocurrency products.

The company announced it will launch Bitcoin volatility-based futures contracts on June 1, subject to regulatory approval. These new products aim to enable investors to develop more precise portfolio management strategies by allowing them to focus solely on volatility risk, independent of price movement.

Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, emphasized the increasing demand for regulated products in the crypto markets, stating that the new volatility futures will provide investors with a significant tool for both taking positions and hedging. According to Vicioso, these products will create a new layer in risk management by offering the opportunity to invest in or hedge against volatility, regardless of market movements.

These futures contracts will be settled based on the CME CF Bitcoin Volatility Index (BVX), which measures implied volatility going 30 days ahead. Unlike traditional price-based products, the BVX is generated using real-time data from Bitcoin option order books and aims to reflect market expectations for the future. Updated every second, this index offers investors a more transparent and dynamic indicator of volatility.

Morgan Stanley Head of Derivatives Sales, David Schlageter, stated that Bitcoin volatility futures would contribute to more effective management of portfolio risk and that making volatility a directly tradable asset class was important for the market.

*This is not investment advice.