CME launches bitcoin volatility futures; Monarq and DV Chain place first trades

CME's bitcoin volatility index futures began trading last week, offering investors a way to trade and hedge price volatility. DV Chain and Monarq Asset Management executed the first block trades, kicking off trading in the contracts. The contracts track the CME CF Bitcoin Volatility Index (BVX), which represents the market's expectations for bitcoin volatility over four weeks.

Their debut lets traders take positions directly on expected price turbulence rather than on price direction. That distinction matters because most derivatives, including futures, perpetual futures and options, require a view on where price is going. Volatility futures eliminate that complexity, allowing traders to express a view purely on how BTC will move in either direction and opening the door to hedging and portfolio strategies that were previously difficult to execute on regulated venues.

Traders can position for how much bitcoin might move around events like this week's U.S. inflation data by going long or short volatility depending on their outlook.

United States

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