Chicago Mercantile Exchange Group (CME Group), one of the largest derivatives exchanges in the world, is preparing to expand its digital currency product offerings by launching Bitcoin volatility futures contracts on June 1, subject to regulatory approval. This move comes amid continued rising institutional demand for digital currency risk management tools amidst ongoing market turbulence.


Unlike traditional Bitcoin futures contracts, which track the direction of Bitcoin's price, the new contracts will focus on the expected range of Bitcoin's price volatility. This allows traders to hedge or speculate on the volatility itself rather than the market direction.
Why might anyone want to trade volatility?
The contracts will be settled according to the Bitcoin Volatility Index (BVX) issued by CME CF, a 30-day forward-looking benchmark index derived from real-time Bitcoin options data. This index is designed to measure implied volatility, not spot price movements.
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