2 days ago
CME Group plans to motorboat Bitcoin Volatility futures connected June 1, pending regulatory review, giving investors a compliant mode to commercialized expected Bitcoin volatility alternatively than terms direction, according to a institution merchandise published Tuesday.
The Chicago-based derivatives marketplace said the contracts volition settee to the CME CF Bitcoin Volatility Index, a 30-day measurement of expected Bitcoin volatility derived from CME options markets.
CME describes the caller contracts arsenic Commodity Futures Trading Commission (CFTC)-regulated futures aimed specifically astatine Bitcoin volatility, extending the existing US regulatory model that already covers CME’s Bitcoin and Ether derivatives.
Giovanni Vicioso, CME Group’s planetary caput of cryptocurrency products, said successful the merchandise that marketplace participants are seeking regulated products that connection vulnerability to marketplace moves, and that the caller futures would fto traders put successful oregon hedge against aboriginal Bitcoin volatility.
The motorboat would springiness institutions a regulated mode to commercialized Bitcoin volatility successful the US straight done CME’s clearing framework, alternatively than gathering akin vulnerability done combinations of Bitcoin options and futures oregon utilizing offshore venues.
Related: CME CEO Duffy says speech is exploring issuing its ain token
In the aforesaid release, Morgan Stanley managing manager and caput of derivatives income David Schlageter said the contracts should assistance marketplace participants negociate portfolio hazard by trading volatility itself.
CME Group to Launch Bitcoin Volatility Futures Contracts. Source: PR Newswire.
CME described the contracts arsenic the “first-of-their-kind regulated futures contracts,” distinguishing them from existing crypto-native volatility products offered extracurricular the US-regulated futures framework.
Cointelegraph reached retired to CME for further comment, but had not received a effect by publication.
CME’s merchandise keeps Bitcoin volatility trading onshore
Similar products beryllium elsewhere. Deribit launched BTC DVOL futures successful March 2023, tied to its implied-volatility index, portion BitMEX introduced its BVOL 30-day humanities volatility futures backmost successful January 2015.
CME archetypal introduced cash-settled Bitcoin futures successful December 2017 and has since expanded its regulated crypto lineup to see Bitcoin options, Micro Bitcoin futures and options, Ether futures and options and other cryptocurrency contracts.
The radical is preparing to determination its cryptocurrency futures and options to 24/7 trading from May 29, taxable to regulatory review, further aligning its marketplace operation with the always-on quality of integer assets.
That propulsion comes arsenic crypto derivatives proceed to predominate trading enactment much broadly, with a CoinGlass study estimating 2025 crypto derivatives measurement astatine astir $85.7 trillion, and Swiss slope Amina Group finding that derivatives relationship for astir three-quarters of each crypto trading.
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