Cboe Introduces Volatility Index for Bitcoin Market

Cboe Global Markets is expanding its portfolio of volatility indices with the upcoming launch of the Cboe IBIT Volatility Index (BITVX). The new index will measure the 30-day forward-looking volatility of the bitcoin market, providing investors with a transparent and rules-based benchmark for expected volatility.

The BITVX Index will be calculated using Cboe's proprietary VIX methodology, which derives expected volatility directly from option prices rather than historical returns. This approach is similar to the well-established VIX Index, which measures the 30-day forward-looking volatility of the U.S. equity market.

Cboe Global Markets' decision to launch the BITVX Index reflects the growing interest in bitcoin and other digital assets among investors. The index will be based on iShares Bitcoin Trust ETF options, one of the most actively traded U.S. options tied to digital assets.