(SeaPRwire) –
By: James Vance
Traders have long faced a problem with crypto derivatives. They had to predict Bitcoin’s price direction to profit, even when they only cared about swings. This forced unnecessary directional risks.
Last week, CME launched Bitcoin volatility futures. These contracts track the CME CF Bitcoin Volatility Index (four-week expected swings). DV Chain and Monarq Asset Management did the first block trades. CME’s crypto derivatives volume is up 38% year-to-date (266,900 contracts), and average daily open interest rose by 18% (274,500 contracts). Monarq CEO Shiliang Tang said Bitcoin is maturing into a mainstream institutional asset, so demand for risk tools grows.
This launch fills a gap in institutional crypto risk management. As more firms use these futures, Bitcoin will solidify its regulated asset status. Other exchanges will likely roll out similar volatility products soon.
Author bio: James Vance, Senior Columnist at a top international tech weekly, focuses on crypto derivatives and institutional adoption trends.