CME launches Bitcoin Volatility Index, similar to VIX in the stock market

PANews reported on December 3 that the Chicago Mercantile Exchange (CME Group) announced the launch of new crypto benchmarks such as the Bitcoin Volatility Index to quantify market uncertainty. The index refers to the implied volatility of Bitcoin and micro-Bitcoin options, similar to the VIX in the stock market, and aims to optimize option pricing and risk management.

The Bitcoin volatility benchmark launched by CME and CF Benchmarks includes the real-time index BVX and the settlement index BVXS. The two are the first benchmarks to directly measure 30-day forward-looking implied volatility, derived from the CME Bitcoin and Micro Bitcoin options order books, using variance swap pricing to isolate volatility exposure. BVX is published every second during the trading session and BVXS is published at 16:00 London time.

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