CME Launches Bitcoin Volatility Futures as Monarq and DV Chain Make First Trades

CME Group’s bitcoin volatility index futures began trading last week, with Monarq Asset Management and DV Chain executing the first block trades. The contracts are tied to the CME CF Bitcoin Volatility Index, which reflects market expectations for bitcoin volatility over the next four weeks.

The launch matters because it gives traders a direct way to take views on bitcoin’s expected price movement without needing to bet on whether BTC will rise or fall. According to the source, the product can also be used for hedging and portfolio strategies around market-moving events, including U.S. inflation data releases.

Most crypto derivatives, such as futures, perpetual futures and options, still require some view on price direction or directional exposure. CME’s volatility futures separate that question from the size of bitcoin’s expected moves, allowing traders to go long or short volatility itself.

Monarq CEO Shiliang Tang described the launch as a step toward broader regulated volatility products as bitcoin becomes a more mainstream institutional asset. The source identifies Monarq as an institutional-focused quantitative and systematic digital asset investment firm, while DV Chain provides liquidity and market-making services.

The new contracts add to CME’s existing crypto derivatives lineup, which includes standard and micro futures and options for bitcoin and ether. CoinDesk reported that CME’s crypto derivatives business has reached roughly 266,900 contracts year-to-date, up 38% year over year, with average daily open interest of roughly 274,500 contracts, up 18%.