MarketsShare this articleCopy linkX (Twitter)LinkedInFacebookEmailCME Introduces Bitcoin Volatility Trading, Two Firms Take Initial Positions
Monarq and DV Chain initiate trading in CME's bitcoin volatility index futures.
By Omkar Godbole|Edited by Shaurya Malwa Jun 8, 2026, 8:19 a.m. 2 min readMake preferred on
CME's bitcoin volatility futures launch. (CoinDesk Archives)Key Details:
- CME Group has rolled out bitcoin volatility index futures based on the CME CF Bitcoin Volatility Index, which allows traders to speculate on expected BTC price fluctuations over a four-week period.
- Last week, Monarq and DV Chain completed the first block trades.
- The new contracts enable investors to trade and hedge against volatility itself, rather than merely speculating on bitcoin’s price direction, which can be useful during events like U.S. inflation data releases.
The CME's bitcoin BTC$62,945.93 volatility index futures began trading last week, presenting a novel trading option for investors looking to manage price volatility. DV Chain and Monarq Asset Management conducted the inaugural block trades, marking the start of trading for these contracts.
These volatility futures are based on the CME CF Bitcoin Volatility Index (BVX), which indicates market expectations for bitcoin's volatility over a four-week timeframe. The introduction of these contracts allows traders to take positions based on anticipated price fluctuations instead of just price movements.
This differentiation is significant as most derivatives, such as futures and options, require a prediction on price direction. Volatility futures simplify this by enabling traders to express their views solely on how BTC might move, regardless of direction.
This innovation creates opportunities for new hedging and portfolio strategies that were previously challenging to implement in regulated markets. For instance, traders can position themselves based on anticipated volatility surrounding significant events like upcoming U.S. inflation data, opting to go long or short on volatility based on their expectations.
Shiliang Tang, CEO of Monarq, described the launch as a significant advancement in expanding the range of regulated volatility products available.
"As bitcoin continues to evolve into a more widely adopted institutional asset class, the demand for advanced risk management tools increases correspondingly. The robust instruments offered by CME Group Bitcoin Volatility futures are precisely what investors need to effectively communicate their market perspectives and manage their portfolios securely and transparently," he stated in the press release.
Monarq Asset Management is a quantitative and systematic digital asset investment firm focused on institutional clients, founded by former executives from companies such as LedgerPrime, Tower Research, and BlockTower Capital. DV Chain serves as a liquidity and market-making provider.
The introduction of volatility futures enhances CME's existing product lineup, which includes standard and micro futures and options contracts for bitcoin and ether. The crypto derivatives segment has seen about 266,900 contracts traded so far this year, reflecting a 38% increase compared to the previous year, while the average daily open interest stands at around 274,500 contracts, up 18% year-over-year.
Bitcoin NewsVolatilityMore For You
Zcash rebounds 45% as developers announce new Ironwood upgrade
By Shaurya Malwa|Edited by Omkar Godbole49 minutes agoThe proposal aims to ensure that no counterfeit coins are in circulation, addressing a bug that caused last week’s drop. ZEC is still down about 22% this week.
What to know:
- Zcash has surged approximately 45% from last week’s low after developers proposed a solution for a serious counterfeiting bug in its privacy-oriented Orchard pool.
- The Ironwood proposal aims to transition users to a new, corrected privacy pool, allowing anyone running Zcash software to confirm that no more than the correct amount...