Monarq and DV Chain have begun trading CME Group’s bitcoin volatility index futures, adding early liquidity to the newly listed contracts and giving institutions a standardized way to trade and hedge bitcoin volatility.
Early participation from market makers
DV Chain, a Chicago-based liquidity provider and affiliate of proprietary trading firm DV Trading, said it is active in the new market. Monarq, a digital asset trading firm, is also among the first participants. Early involvement from professional trading firms is typically key to establishing pricing, spreads, and depth in newly launched derivatives.
What the contracts represent
CME’s bitcoin volatility index futures are designed to track expected volatility in bitcoin as measured by a dedicated index. Unlike price-based futures, volatility futures allow investors to express views on the magnitude of bitcoin’s price swings rather than its direction. The contracts are cash-settled to the index level, providing a regulated mechanism to trade and transfer volatility risk.
Why it matters
Volatility futures can help options desks, market makers, and other institutional participants hedge exposure more efficiently, complementing existing bitcoin and ether futures and options. The product expands the crypto derivatives toolkit with a benchmarked instrument for managing implied volatility, which could support deeper liquidity across bitcoin options and related strategies.
CME’s growing crypto lineup
CME Group has steadily broadened its digital asset derivatives offering in recent years, including bitcoin and ether futures and options. The addition of bitcoin volatility index futures continues that expansion, aiming to meet institutional demand for regulated instruments that target specific risk factors within crypto markets.