Cboe Global Markets has announced plans to introduce a new volatility benchmark tied to the bitcoin market. The index, dubbed the Cboe IBIT Volatility Index (ticker BITVX), is scheduled to go live on March 23 and will track the market's expectation of 30-day forward-looking volatility derived from options linked to the iShares Bitcoin Trust ETF (IBIT).
Benchmark Built on IBIT Options
BITVX aggregates information from multiple option strikes to produce a model-free estimate of implied volatility, bypassing historical price data. IBIT options have become one of the most active derivatives products tied to digital assets in the United States. Traders use them to express views on price moves, hedge exposure or execute structured strategies. Cboe notes that option premiums embed market expectations about future fluctuations, a methodology already proven across asset classes.
The calculation follows the same framework as the VIX Index: combining out-of-the-money option prices across weekly expirations, blending two maturity dates to bracket a 30-day horizon, and maintaining a consistent forward-looking timeframe.
VIX Methodology Goes Digital
The VIX Index, based on S&P 500 options, is the most widely followed volatility gauge in equities. By applying it to bitcoin-linked options, Cboe aims to create a comparable metric for crypto. "We're taking Cboe's proven VIX methodology and applying it to bitcoin, giving the market a transparent, rules-based benchmark for expected volatility from IBIT options activity," said Rob Hocking, Global Head of Derivatives at Cboe.
Hocking added that bitcoin ETF options have become a popular vehicle for accessing and managing bitcoin exposure. "A dedicated volatility index will be additive to the ecosystem, helping investors better analyze, price and hedge risk in digital assets."
Expanding the Volatility Index Suite
Volatility indices are widely used across equities, commodities and FX to monitor sentiment and price derivatives. BITVX extends Cboe's volatility framework into digital assets, reflecting the maturation of derivatives tied to cryptocurrency exchange-traded products.
The growth of bitcoin ETFs has fueled the expansion of related options markets. These listed derivatives offer a regulated alternative to platforms native to crypto exchanges. An active options market enables implied volatility calculations, and BITVX will serve as a standardized reference for traders, analysts and risk managers.
Cboe confirmed the index will be calculated and administered by Cboe Global Indices. Its launch marks another step in bridging digital asset markets with traditional financial infrastructure.