CME launches Bitcoin volatility index, similar to VIX in the stock market

The Chicago Mercantile Exchange (CME Group) announced the launch of new cryptocurrency benchmarks, including the Bitcoin Volatility Index, to quantify market uncertainty.

The index references the implied volatility of Bitcoin and Micro Bitcoin options, similar to the VIX in the stock market, and aims to optimize options pricing and risk management. The Bitcoin volatility benchmarks launched by CME and CF Benchmarks include the real-time index BVX and the settlement index BVXS. Both are the first benchmarks to directly measure the 30-day forward implied volatility, sourced from the CME Bitcoin and Micro Bitcoin options order book, using variance swap pricing to isolate volatility exposure. BVX is published every second during trading hours, while BVXS is published at 16:00 London time.