Cboe to Launch Bitcoin Volatility Index BITVX on March 23

Global Markets announced the launch of the Cboe IBIT Volatility Index, ticker BITVX, on Monday, March 23. The new index expands the firm's suite of volatility products by applying its proprietary VIX methodology to the bitcoin market.

BITVX is designed to measure the market's 30-day forward-looking volatility expectation for bitcoin, derived from options on the iShares Bitcoin Trust ETF (IBIT). It is calculated by Cboe Global Indices using the VIX methodology, which extracts implied volatility directly from option prices.

The VIX Index, based on S&P 500 options, is the premier gauge of U.S. equity market volatility. Following the same framework, BITVX aggregates data from a range of out-of-the-money IBIT option strikes to create a model-free implied volatility measure.

Rob Hocking, Global Head of Derivatives at Cboe, stated, "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." He added, "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."

The BITVX Index calculation uses weekly Friday expirations of IBIT options, employing two maturities to maintain a constant 30-day horizon. The index reflects the market's consensus view of near-term volatility as implied by listed IBIT option prices.