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CF Benchmarks unveils new Bitcoin volatility index to track crypto price fluctuations

TL;DR

  • CF Benchmarks has introduced the Bitcoin Volatility Index, predicting Bitcoin price movements 30 days in advance to aid volatility trading.
  • The index uses data from Bitcoin options on the Chicago Mercantile Exchange to create real-time BVX and daily BVXS settlement rates, improving risk management and product settlement.
  • Compliant with UK BMR regulations, these indices ensure accurate tracking of Bitcoin volatility, aiding market understanding and financial product development.


CF Benchmarks has introduced the Bitcoin Volatility Index, enabling the monitoring and trading of Bitcoin price movements projected 30 days into the future.

Research on CF Benchmarks and Real-Time Bitcoin Monitoring

The Bitcoin Volatility Index by CF Benchmarks serves two functions. It could be a store of risk management or a settlement mechanism for multiple products, thereby enabling market participants to trade on volatility.

All CF Benchmarks are compliant with UK BMR regulations, and this includes also the Bitcoin Volatility Index. It is obtained through a comprehensive approach. This ensures that “products that are benchmarked against it are able to faithfully follow the underlying asset and are not influenced by price fluctuations created by the bad data.” The introduction of new indices, the CF Bitcoin Volatility Real Time Index (BVX) and the CF Bitcoin Volatility Index Settlement Rate (BVXS), is noteworthy.

These indices aggregate volatility information from Bitcoin options contracts on the Chicago Mercantile Exchange (CME) in one number, which is expected to be an effective measure of market volatility and uncertainty.

The BVX index is constantly alive, providing volatility in real time. Conversely, the BVXS index provides a daily settlement rate derived from a 30-minute analysis of BVX data from 15:30 to 16:00 London time. In this regard, Sui Chung, the CEO of CF Benchmarks, shared the significance of volatility indices for the financial landscape, emphasizing that the indices are used as a tool to measure investor sentiments and risk appetite.

He stressed that CF Benchmarks is the leading cryptocurrency index provider by AuR and that the Bitcoin Volatility Index will be the go-to resource for comprehending bitcoin price swings, similar to BRR serving as the industry’s standard fruit for bitcoin spot price.

Benchmarks and pricing indicators are pivotal in promoting the maturity of digital assets, including Bitcoin. The approval of the United States Securities and Exchange Commission (SEC) spot Bitcoin ETF is the most notable cryptocurrency offering that has indeed represented the Bitcoin price during the last three months. The increasing hype around this new product further pushed the value of Bitcoin to new levels, with the digital currency reaching an all-time high of over $73,000.

Overall, the interest of the world investors in Bitcoin is rising. This wave of popularity and approval is expected to result in the creation and implementation of more significant indices in the near future.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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