Futures linked to implicit volatility indices of Bitcoin (BTC) and Ether (ETH) of Volmex, Bvvv and Eviv, have registered a cumulative negotiation volume of more than $ 10 million since their debut on the decentralized leverage negotiation platform Gtrade.
The rapid increase of more than $ 10 million shows that merchants are increasingly involved with sophisticated derivatives linked to volatility for risk management, looking beyond price speculation.
The Bvvvis measures implicit or expected volatility based on Bitcoin options for a period of four weeks. The EVIV represents the same for the ether. Both indices have decreased abruptly during the recent bull, which suggests a possible evolution in fear meters similar to VIX.
Commercial volatility futures involve betting on the expected amount of price fluctuation in the underlying asset during a specific future period, instead of predicting their address.
Essentially, he is speculating on how “potholes” or “quiet” will be the market, which allows him to benefit or protect against early uncertainty without having a directional vision on the price of the asset.
“The perpetual Bviv and Eviv of Volmex launched in Gtrade (profits) a month ago and have already exceeded the volume of $ 11 million, an important milestone,” said Cole Kennelly, Cole Kennelly, founder and CEO of Volmex Labs.
Kennelly added that futures linked to volatility improve user experience, allowing merchants to bet on price turbulence while avoiding the complexities involved in options of options centered on volatility that require constant monitoring of several variables, including options of options, the prices of the Sortgos or the Explipes.
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