CME Group plans to launch Bitcoin Volatility futures on June 1, pending regulatory review, giving investors a compliant way to trade expected Bitcoin volatility rather than price direction, according to a company release published Tuesday.
The Chicago-based derivatives marketplace said the contracts will settle to the CME CF Bitcoin Volatility Index, a 30-day measure of expected Bitcoin volatility derived from CME options markets.
CME describes the new contracts as Commodity Futures Trading Commission (CFTC)-regulated futures aimed specifically at Bitcoin volatility, extending the existing US regulatory framework that already covers CME’s Bitcoin and Ether derivatives.
Giovanni Vicioso, CME Group’s global head of cryptocurrency products, said in the release that market participants are seeking regulated products that offer exposure to market moves, and that the new futures would let traders invest in or hedge against future Bitcoin volatility.
The launch would give institutions a regulated way to trade Bitcoin volatility in the US directly through CME’s clearing framework, rather than building similar exposure through combinations of Bitcoin options and futures or using offshore venues.
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In the same release, Morgan Stanley managing director and head of derivatives sales David Schlageter said the contracts should help market participants manage portfolio risk by trading volatility itself.
CME Group to Launch Bitcoin Volatility Futures Contracts. Source: PR Newswire.
CME described the contracts as the “first-of-their-kind regulated futures contracts,” distinguishing them from existing crypto-native volatility products offered outside the US-regulated futures framework.
Cointelegraph reached out to CME for additional comment, but had not received a response by publication.
CME’s product keeps Bitcoin volatility trading onshore
Similar products exist elsewhere. Deribit launched BTC DVOL futures in March 2023, tied to its implied-volatility index, while BitMEX introduced its BVOL 30-day historical volatility futures back in January 2015.
CME first introduced cash-settled Bitcoin futures in December 2017 and has since expanded its regulated crypto lineup to include Bitcoin options, Micro Bitcoin futures and options, Ether futures and options and other cryptocurrency contracts.
The group is preparing to move its cryptocurrency futures and options to 24/7 trading from May 29, subject to regulatory review, further aligning its market structure with the always-on nature of digital assets.
That push comes as crypto derivatives continue to dominate trading activity more broadly, with a CoinGlass report estimating 2025 crypto derivatives volume at about $85.7 trillion, and Swiss bank Amina Group finding that derivatives account for roughly three-quarters of all crypto trading.
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