• CME Group and CF Benchmarks have launched the CME CF Bitcoin Volatility Indices, providing new benchmarks for 30-day forward-looking bitcoin price volatility.
  • The indices—CF Bitcoin Volatility Real Time Index (BVX) and CF Bitcoin Volatility Index Settlement Rate (BVXS)—aggregate implied volatility from bitcoin options traded on the CME.
  • This development responds to growing institutional demand for sophisticated risk management tools in cryptocurrency markets, mirroring established practices in traditional finance.

CME Group, the world's leading derivatives marketplace, and FCA-regulated CF Benchmarks have launched the CME CF Bitcoin Volatility Indices, marking a significant step in the institutionalization of cryptocurrency markets. The new benchmarks are designed to measure and facilitate trading of 30-day forward-looking bitcoin price volatility, providing market participants with both real-time and daily settlement data for enhanced risk management.

The indices aggregate implied volatility from bitcoin options traded on the CME, with the BVX serving as a real-time indicator and the BVXS providing the daily settlement rate. Both indices are compliant with UK Benchmarks Regulation and are based on prices from CFTC-regulated products, according to documentation reviewed by market participants. The launch comes as CME's crypto derivatives suite saw average daily volumes of 198,000 contracts, representing $11.3 billion in notional value during Q1 2025.

"This addresses a critical gap in the digital assets ecosystem," said a person familiar with the development who requested anonymity because they weren't authorized to speak publicly. "Institutional participants have been seeking tools analogous to the VIX in equity markets to better manage their crypto exposure."

The creation of bitcoin volatility indices responds to increasing demand from asset managers, ETF issuers, and institutional traders who require more sophisticated instruments to hedge against cryptocurrency price swings. Six of the eleven major U.S. spot bitcoin ETFs currently reference CF Benchmarks indices for their pricing, with over $40 billion in assets now tracking the firm's various cryptocurrency benchmarks.

CME Group and CF Benchmarks declined to comment beyond their published materials when reached for this article. However, market participants noted that the timing aligns with increased volatility in bitcoin and ether prices during the first quarter, which drove heightened hedging activity among institutional traders.

The indices will enable the development of new volatility-based products, potentially including options or futures linked directly to bitcoin volatility. This expansion mirrors the evolution of similar benchmarks across traditional asset classes as markets mature and institutional participation deepens.

Correction: An earlier version of this article misstated the number of U.S. spot bitcoin ETFs referencing CF Benchmarks indices. The correct number is six out of eleven major funds.