CME Plans to Establish Bitcoin Volatility Futures Independent From BTC Price

CME, the world’s largest stock market, announced plans on Tuesday to launch a new one Bitcoin Unstable future that will soon allow traders to bet on the growth of cryptocurrency changing prices.

Derivatives allow Bitcoin traders to trade against fluctuations in the price of a commodity, without betting on the price of Bitcoin itself. The sale will begin on June 1, CME said, pending further review.

“With our new future Bitcoin volatility, traders will be able to hedge or fence against the volatility of the future of Bitcoin, allowing them to find a layer of complex risk management,” Giovanni Vicioso, CME’s global head of crypto products, said in a statement.

Financial products following Bitcoin’s volatility have become popular this year, as institutions and retail investors seek more and more ways to protect themselves against long-term Bitcoin assets. In March, CoinShares filed to offer the first Wall Street Bitcoin volatility ETF.

Those ETFs tracked CME’s Bitcoin Volatility Index, or Price BVXwhich, since 2024, has provided a real indication of the volatility of Bitcoin contracts traded on the CME. In short, BVX looks at whether the market, at any given time, is betting that the price of Bitcoin will fluctuate significantly or remain stable.

CME Bitcoin futures volatility can also track BVX, which is published every second between 7am and 4pm CT on market trading days.

Earlier this year, CME announced plans extending its crypto trading hours to 24/7, following the lead of other major Wall Street players who want to keep up with the volatility of the digital asset market. To date, the CME crypto market has traded 23 hours a day, with a weekend break between Friday afternoon and Sunday evening.

CME’s non-stop crypto trading is expected to take place on May 29, a few days before Bitcoin’s volatility future is slated to launch.

Bitcoin has been on the rise lately, going up above $81,000 on Tuesday for the first time since January. The leading cryptocurrency had fallen near the $60,000 mark this spring after peaking above $126,000 last October.