Sunday, May 19, 2024

Deribit to Launch Futures Contracts for Bitcoin Volatility Buying and selling


Deribit, a significant crypto choices buying and selling platform, will launch futures contracts to facilitate Bitcoin volatility buying and selling, the change introduced. It will likely be the primary such crypto derivatives instrument available in the market and might be priced, margined, and settled in USDC.

The BTC DVOL futures might be primarily based on the Deribit Bitcoin Volatility Index (DVOL), a parameter that measures the volatility of the cryptocurrency throughout markets. It’s calculated by implied volatility with a choice of possibility expiries and strikes on Deribit and offers a 30-day outlook on the expectation of annualized volatility.

The brand new contract will debut with one expiry and might be accessible on Deribit as of 27 March 2023. Moreover, the change has plans to launch extra expiries within the coming months.

“DVOL can point out modifications within the well being and course of the Bitcoin market, making it a vital instrument for merchants seeking to keep forward of the curve and an awesome baseline for volatility buying and selling,” stated the CEO of Deribit, John Jansen.

Deribit is among the many high cryptocurrency derivatives exchanges, which dealt with greater than $1.4 billion price of derivatives contracts within the final 24 hours, based on Coinmarketcap. On the subject of cryptocurrency choices, the platform dominates, capturing a lot of the Bitcoin and Ether choices markets. It additionally gives cryptocurrency futures devices.

“BTC DVOL futures are an thrilling new product that may assist merchants to hedge their positions and make the most of market volatility whereas additionally serving as a instrument for added threat administration, alpha technology, and portfolio diversification,” Jansen added. “This product is especially helpful for many who need publicity to volatility however don’t need to commerce complicated choices methods.”

Timing the Market

Deribit is launching the brand new product when the cryptocurrency market has gained a robust upward momentum following a disaster within the American banking business. Furthermore, two US banks, Signature Financial institution and Silicon Valley Financial institution, went below Federal Deposit Insurance coverage Company receivership, whereas one other, Silvergate Financial institution, declared voluntary liquidation.

Bitcoin gained about 36 p.c within the final seven days and is buying and selling above $27,000 as of press time. Different main cryptocurrencies, together with Ether, BNB, Polygon, and plenty of others, additionally gained equally within the latest bull run.

“Having DVOL futures accessible makes operating a portfolio of BTC choices much more manageable,” stated Greg Magadini, the Director of Derivatives at Amberdata.

“Similar to conventional PMs will promote an S&P500 future to hedge their inventory holdings, Deribit merchants can now granularly handle their Vega publicity by buying and selling a liquid DVOL future in opposition to their possibility guide. Speculators also can have clear Vega bets by buying and selling DVOL futures whereas avoiding the complexities of path dependency.”

Deribit, a significant crypto choices buying and selling platform, will launch futures contracts to facilitate Bitcoin volatility buying and selling, the change introduced. It will likely be the primary such crypto derivatives instrument available in the market and might be priced, margined, and settled in USDC.

The BTC DVOL futures might be primarily based on the Deribit Bitcoin Volatility Index (DVOL), a parameter that measures the volatility of the cryptocurrency throughout markets. It’s calculated by implied volatility with a choice of possibility expiries and strikes on Deribit and offers a 30-day outlook on the expectation of annualized volatility.

The brand new contract will debut with one expiry and might be accessible on Deribit as of 27 March 2023. Moreover, the change has plans to launch extra expiries within the coming months.

“DVOL can point out modifications within the well being and course of the Bitcoin market, making it a vital instrument for merchants seeking to keep forward of the curve and an awesome baseline for volatility buying and selling,” stated the CEO of Deribit, John Jansen.

Deribit is among the many high cryptocurrency derivatives exchanges, which dealt with greater than $1.4 billion price of derivatives contracts within the final 24 hours, based on Coinmarketcap. On the subject of cryptocurrency choices, the platform dominates, capturing a lot of the Bitcoin and Ether choices markets. It additionally gives cryptocurrency futures devices.

“BTC DVOL futures are an thrilling new product that may assist merchants to hedge their positions and make the most of market volatility whereas additionally serving as a instrument for added threat administration, alpha technology, and portfolio diversification,” Jansen added. “This product is especially helpful for many who need publicity to volatility however don’t need to commerce complicated choices methods.”

Timing the Market

Deribit is launching the brand new product when the cryptocurrency market has gained a robust upward momentum following a disaster within the American banking business. Furthermore, two US banks, Signature Financial institution and Silicon Valley Financial institution, went below Federal Deposit Insurance coverage Company receivership, whereas one other, Silvergate Financial institution, declared voluntary liquidation.

Bitcoin gained about 36 p.c within the final seven days and is buying and selling above $27,000 as of press time. Different main cryptocurrencies, together with Ether, BNB, Polygon, and plenty of others, additionally gained equally within the latest bull run.

“Having DVOL futures accessible makes operating a portfolio of BTC choices much more manageable,” stated Greg Magadini, the Director of Derivatives at Amberdata.

“Similar to conventional PMs will promote an S&P500 future to hedge their inventory holdings, Deribit merchants can now granularly handle their Vega publicity by buying and selling a liquid DVOL future in opposition to their possibility guide. Speculators also can have clear Vega bets by buying and selling DVOL futures whereas avoiding the complexities of path dependency.”



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