CME Group has introduced a new tool to measure market uncertainty surrounding Bitcoin called the Bitcoin Volatility Index. This index, derived from the implied volatility of Bitcoin and Micro Bitcoin options, aims to improve options pricing and risk management strategies, similar to the VIX in traditional stock markets. Developed in partnership with CF Benchmarks, this innovative index encompasses two components: the Bitcoin Volatility Benchmark (BVX), published every second during trading hours, and the settlement index BVXS released at 16:00 London time. Both indices are built upon real-time data from the CME Bitcoin and Micro Bitcoin options order book, utilizing variance swap pricing to precisely measure volatility exposure. The new index offers a deeper understanding of Bitcoin’s market dynamics and allows for more informed financial decisions.