CF Benchmarks Launches Bitcoin Volatility Index

CF Benchmarks announced the launch of the Bitcoin Volatility Index which would facilitate the tracking and trading of 30-day forward-looking BTC price fluctuations.

CF Benchmarks and Bitcoin Real-Time Tracking

The CF Benchmarks’ Bitcoin Volatility Index can be explored in two different ways. It could be utilized as a database for risk settlement. Also, it could serve as the settlement mechanism for a range of products that ensures market participants can trade volatility. 

Based on its design, every CF Benchmarks is UK BMR-compliant, so is this Bitcoin Volatility Index. It is also calculated using a rigorous methodology. 

This implies that “products benchmarked against it can reliably track the underlying without being impacted by unaccountable price swings caused by poor quality data,” per a published statement. 

The newly launched indices include the CF Bitcoin Volatility Real Time Index (BVX) and the CF Bitcoin Volatility Index Settlement Rate (BVXS). Markedly, these indices aggregate suggest volatility from BTC options contracts listed on the Chicago Mercantile Exchange (CME) into a single value with a focus on gauging market volatility and uncertainty. 

Of the two indices, the BVX is active almost every second, providing volatility real time. On the other hand, BVXS calculates a daily settlement rate based on a 30-minute window of BVX observations between 15:30 and 16:00 London time. 

Sui Chung, CEO of CF Benchmarks explained how volatility indices have been established as a key indicator in the financial ecosystem, especially those that offer participants a means to measure investor sentiment and risk appetite.

“As the largest cryptocurrency index provider by Assets under Reference (AuR), CF Benchmarks’ Bitcoin Volatility Index will be the benchmark for bitcoin price volatility, just as the Bitcoin Reference Rate (BRR) is the benchmark for spot bitcoin,” Chung added. 

Spot Bitcoin ETF: BTC Tracking On Different Pedestal

Benchmarks and price trackers are important in the push for assets like Bitcoin to attain full maturity.

The spot Bitcoin ETF that was greenlighted by the United States Securities and Exchange Commission (SEC) is one of the key crypto products that has effectively tracked Bitcoin price in the last three months. As the hype for the new product heightened, Bitcoin prices hit new levels that translated to an all-time high (ATH) above $73,000.

Generally, the flagship cryptocurrency is gaining attention from investors in different jurisdictions. This mainstream adoption and recognition is likely to birth the emergence and embrace of some other functional indices in the near future.