CF Benchmarks launches Bitcoin volatility index 🚀📈🔥

CF Benchmarks Launches Bitcoin Volatility Index

CF Benchmarks, a firm regulated by the FCA, has introduced a new product called the Bitcoin Volatility Index. This index allows traders to track and trade 30-day forward-looking bitcoin price volatility.

Indices Composition

The new product consists of two indices: the CF Bitcoin Volatility Real Time Index (BVX) and the CF Bitcoin Volatility Index Settlement Rate (BVXS).
These indices aggregate implied volatility from bitcoin options contracts listed on the Chicago Mercantile Exchange (CME) to provide a single value reflecting market volatility and uncertainty.

Key Indicator in Financial Markets

“Volatility indices have become a key indicator in financial markets providing participants with a means to measure investor sentiment and risk appetite,” stated CF Benchmarks CEO Sui Chung.

Real-time Tracking of Bitcoin Volatility

The BVX index updates approximately every second to offer real-time information on bitcoin volatility.
Meanwhile, the BVXS index calculates the daily settlement rate based on a 30-minute window of BVX observations between 1530 pm and 1600 pm London time.

“CF Benchmarks’ Bitcoin Volatility Index will be the benchmark for bitcoin price volatility, just as the Bitcoin Reference Rate (BRR) is the benchmark for spot bitcoin,” added Chung.

The new volatility index from CF Benchmarks can be utilized as risk sentiment data or as the settlement mechanism for various products, enabling market participants to trade volatility. It is also compliant with the UK Benchmarks Regulation (BMR).

“Crypto market participants need to be able to trade volatility in crypto just like they can in other asset classes,” mentioned CF Benchmarks Head of Product Thomas Erdosi. He emphasized that it provides insight into market sentiment.

Hot Take: CF Benchmarks Bitcoin Volatility Index

CF Benchmarks has launched the Bitcoin Volatility Index, revolutionizing the tracking and trading of bitcoin price volatility. Embrace this index to enhance your trading strategies and stay informed about market sentiment. Experience real-time updates and settlement rates, becoming an essential tool for crypto traders.