Greetings from Gate Square,

CME Group, one of the world's largest derivatives markets, continues to expand its portfolio of crypto asset products. The company announced it will launch Bitcoin volatility futures on June 1st, subject to necessary regulatory approvals.

This new product offers investors the opportunity to focus solely on volatility risk, independent of price direction. Contracts will be settled based on the CME CF Bitcoin Volatility Index (BVX), which measures 30-day forward implied volatility and is updated every second with real-time data derived from CME Bitcoin option order books.

Giovanni Vicioso, CME Group's Global Head of Cryptocurrency Products, emphasized the growing demand for regulated products among crypto market participants, stating, "With our new Bitcoin volatility futures, investors will be able to invest in or hedge against Bitcoin's future volatility. This will give them access to a critical layer of risk management."

Until now, those wishing to take positions on volatility could only do so synthetically through options strategies, which brought with it exposure to directional risk and distortion. A regulated futures contract offers institutional investors a much more direct and clean instrument. As Morgan Stanley Head of Derivatives Sales David Schlageter stated, this product will contribute to more effective management of portfolio risk.

In the first weeks after launch, attention will be on trading volume and open positions. New futures contracts typically take months to gain liquidity. The real question is whether the market will embrace independent volatility risk as a separate asset class from directional instruments.
⚠️Don't forget to mark stop-loss and manage risk properly.
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