Cboe to Launch 30-Day Bitcoin Volatility Index on iShares ETF Options
Cboe will introduce the iShares Bitcoin Trust ETF Volatility Index (BITVX) on March 23, using its VIX® methodology to measure 30-day forward-looking volatility from ETF options. The index aggregates out-of-the-money option strikes across weekly expirations to provide a model-free implied volatility gauge for bitcoin exposure.
1. Cboe Announces BITVX Launch
Cboe will begin publishing the iShares Bitcoin Trust ETF Volatility Index (BITVX) on March 23, offering the first VIX®-style gauge for bitcoin ETF options. The new index reflects market expectations of 30-day forward volatility derived from listed ETF option prices.
2. Calculation Methodology Details
BITVX uses Cboe’s proprietary VIX methodology, aggregating out-of-the-money iShares Bitcoin Trust ETF option strikes from weekly expirations that bracket a constant 30-day horizon to produce a model-free implied volatility measure.
3. Implications for ETF Options Trading
With BITVX providing a transparent volatility benchmark, traders in iShares Bitcoin Trust ETF options could gain enhanced hedging strategies and improved liquidity, as the index adds a standardized risk metric to digital asset derivatives.