Futures tied to Volmex’s bitcoin (BTC) and ether (ETH) implied volatility indices, BVIV and EVIV, have registered a cumulative trading volume of over $10 million since their debut on decentralized leveraged trading platform gTrade.
The quick rise to over $10 million shows that traders are increasingly engaging with sophisticated derivatives linked to volatility for risk management, looking beyond price speculation.
The BVIV measures the options-based implied or expected volatility in bitcoin over a four-week period. The EVIV represents the same for ether. Both indices have declined sharply during the recent bull run, suggesting a potential evolution into VIX-like fear gauges.
Trading volatility futures involves betting on the expected amount of price fluctuation in the underlying asset over a specified future period, rather than predicting its direction.
Essentially, you’re speculating on how “bumpy” or “calm” the market will be, allowing you to profit from or hedge against anticipated uncertainty without taking a directional view on the asset’s price.
“Volmex’s BVIV and EVIV perpetuals launched on gTrade (Gains) one month ago and have already surpassed $11m volume — a major milestone,” Cole Kennelly, Cole Kennelly, founder and CEO of Volmex Labs told CoinDesk.
Kennelly added that futures tied to volatility improve the user experience, allowing traders to bet on price turbulence while bypassing the complexities involved in volatility-focused options strategies that require constant monitoring of various variables, including option Greeks, strike prices, or expiries.
Read more: Bitcoin Slides to $115K as Dow Jones Rally Stalls at December-January High
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