Placing wagers on volatility: Deribit introduces Bitcoin uncertainty futures
Investors in conventional assets often use volatility products for the purpose of portfolio balancing, controlling risk and speculating.
Crypto derivatives exchange Deribit is taking the next step to revolutionize the cryptocurrency market. The company has recently announced that it will soon launch Bitcoin (BTC) volatility futures, giving investors an innovative and direct way to measure and trade BTC market volatility. The new futures product is a significant development for market participants, as it will allow them to hedge against the risks associated with BTC price volatility.
On March 17, Deribit, a leading cryptocurrency derivatives exchange, announced the launch of BTC DVOL futures. This new derivative contract is based on Deribit's Bitcoin Volatility Index, a measure of the expected volatility of Bitcoin over the next 30 days. According to Deribit, BTC DVOL futures will provide investors with a better understanding of the market and help them make more informed decisions. The launch of this product is a major step forward for the crypto derivatives industry and is likely to have a positive impact on the market.
The VIX, a measure of the volatility of S&P 500 Index options, is a leading indicator of the U.S. stock market. Its ability to accurately predict future market movements has made it an important tool for investors and traders.
The crypto markets have experienced a year of extreme fluctuations, with the period known as “crypto winter” characterized by a deep correction of digital asset prices after a prolonged bullish trend. Investors have been closely monitoring the markets and speculating on further price movements. Despite the unpredictability of the markets, many remain bullish on the future of the crypto industry.