Cboe Unveils BITVX: Bitcoin’s Own Fear Gauge Index
Cboe Global Markets unveiled plans for BITVX, a new index designed to track expected price swings in bitcoin by using options on the popular iShares Bitcoin Trust ETF. The move imports Wall Street’s go-to volatility strategy into crypto, creating a VIX-style metric tied to ETF option prices rather than spot markets.
BITVX could give traders, asset managers and institutional participants a clearer, standardized gauge of market risk—helping with hedging, pricing of derivatives and product development. By formalizing an options-based measure of Bitcoin volatility, Cboe’s index may boost transparency and support further institutionalization of crypto markets, while creating new tools for risk management and portfolio allocation.