Cboe Global Markets announced plans to launch the Cboe IBIT Volatility Index, ticker BITVX, on March 23, introducing a new benchmark designed to measure expected volatility in the bitcoin market. The index will apply the same methodology used for the company’s widely recognized VIX Index but will instead draw data from options tied to the iShares Bitcoin Trust ETF.
BITVX is intended to provide a forward-looking gauge of 30-day bitcoin volatility based on options activity in the iShares Bitcoin Trust ETF, known by its ticker IBIT. The ETF’s options have become one of the most actively traded instruments in the U.S. market for gaining exposure to digital assets.
The new index expands Cboe’s volatility index suite into the cryptocurrency market. By applying its proprietary VIX methodology, the company aims to provide investors with a transparent and rules-based benchmark that reflects the market’s consensus expectations of near-term bitcoin volatility.
The calculation for BITVX will use weekly Friday expirations of IBIT options and incorporate two maturities that bracket a constant 30-day horizon. Similar to the VIX, the index aggregates data across a wide range of out-of-the-money option strike prices to generate a model-free measure of implied volatility derived from option prices rather than historical returns.
Cboe said the index is intended to help investors analyze and manage risk in digital assets by offering a clearer view of expected market volatility. The company noted that bitcoin ETF options have become a popular tool for traders seeking to gain exposure to or hedge positions tied to bitcoin, and the addition of a dedicated volatility benchmark could enhance pricing and risk management across the ecosystem.
Cboe Global Markets operates a global network of derivatives, equities, and foreign exchange markets and has long been a pioneer in equity derivatives innovation. The firm launched the world’s first listed options exchange in 1973 and later introduced S&P 500 index options and the VIX Index, which is widely regarded as a leading indicator of expected volatility in the U.S. equity market.
KEY QUOTES
“With the new BITVX Index, we’re taking the proven framework of Cboe’s VIX Index methodology and applying it to bitcoin, giving the market a transparent, rules-based benchmark for expected volatility derived from IBIT options activity. Bitcoin ETF options are a popular way for investors to access and manage bitcoin exposure, and we believe a dedicated volatility index will be an additive piece to the ecosystem, helping investors better analyze, price, and hedge risk in digital assets.”
Rob Hocking, Global Head Of Derivatives, Cboe Global Markets
