UK-based CF Benchmarks announced its launch. Bitcoin BTC
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The FCA-regulated company’s new product consists of two indices: the CF Bitcoin Volatility Real-Time Index (BVX) and the CF Bitcoin Volatility Index Settlement Rate (BVXS). This index measures market volatility and uncertainty by aggregating the implied volatility of Bitcoin options contracts listed on the Chicago Mercantile Exchange (CME) into a single value.
“Volatility indices have become a key indicator in financial markets, providing participants with a means to gauge investment sentiment and risk appetite,” said Sui Chung, CEO of CF Benchmarks.
Real-time tracking of Bitcoin volatility
The BVX Index prints approximately every second to provide real-time Bitcoin volatility, while the BVXS Index calculates the daily settlement rate based on a 30-minute BVX observation period from 15:30 to 16:00 London time. .
“Just as the Bitcoin Reference Rate (BRR) is the benchmark for spot Bitcoin, CF Benchmarks’ Bitcoin Volatility Index will be the benchmark for Bitcoin price volatility,” Chung added.
According to CF Benchmarks, the new volatility index can be used as a settlement mechanism for risk sentiment data or a variety of products, allowing market participants to trade volatility and is compliant with the UK Benchmark Regulation (BMR).
“Cryptocurrency market participants should be able to trade the volatility of cryptocurrencies just like they would any other asset class,” said Thomas Erdosi, head of product at CF Benchmarks. He added that it also allows participants to gauge market sentiment.
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