Deribit, a serious crypto choices buying and selling platform, will launch futures contracts to facilitate Bitcoin volatility buying and selling, the alternate introduced. Will probably be the primary such crypto derivatives instrument out there and might be priced, margined, and settled in USDC.
The BTC DVOL futures might be based mostly 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 gives a 30-day outlook on the expectation of annualized volatility.
The brand new contract will debut with one expiry and might be obtainable on Deribit as of 27 March 2023. Moreover, the alternate has plans to launch further expiries within the coming months.
“DVOL can point out adjustments within the well being and route of the Bitcoin market, making it an important software for merchants trying to keep forward of the curve and a fantastic baseline for volatility buying and selling,” mentioned 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, in line with Coinmarketcap. On the subject of cryptocurrency choices, the platform dominates, capturing a lot of the Bitcoin and Ether choices markets. It additionally affords cryptocurrency futures devices.
????????All-time excessive BTC Choices Open Curiosity! ????????
????358k contracts
????https://t.co/ZNAt2T4AOw#Crypotoptions #Bitcoin #DeribitExchange #cryptocurrency #AlwaysOpen pic.twitter.com/gbxUv6Gh2b— Deribit (@DeribitExchange) March 15, 2023
“BTC DVOL futures are an thrilling new product that can assist merchants to hedge their positions and make the most of market volatility whereas additionally serving as a software for extra danger administration, alpha era, and portfolio diversification,” Jansen added. “This product is especially helpful for many who need publicity to volatility however don’t wish to commerce complicated choices methods.”
Timing the Market
Deribit is launching the brand new product when the cryptocurrency market has gained a powerful upward momentum following a disaster within the American banking business. Furthermore, two US banks, Signature Financial institution and Silicon Valley Financial institution, went beneath Federal Deposit Insurance coverage Company receivership, whereas one other, Silvergate Financial institution, declared voluntary liquidation.
Bitcoin gained about 36 % 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 current bull run.
#BITCOIN BREAKING BULLISH! ???????? pic.twitter.com/eqFexOLXxv
— Crypto Rover (@rovercrc) March 17, 2023
“Having DVOL futures obtainable makes working a portfolio of BTC choices much more manageable,” mentioned Greg Magadini, the Director of Derivatives at Amberdata.
“Identical 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 may also have clear Vega bets by buying and selling DVOL futures whereas avoiding the complexities of path dependency.”
Deribit, a serious crypto choices buying and selling platform, will launch futures contracts to facilitate Bitcoin volatility buying and selling, the alternate introduced. Will probably be the primary such crypto derivatives instrument out there and might be priced, margined, and settled in USDC.
The BTC DVOL futures might be based mostly 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 gives a 30-day outlook on the expectation of annualized volatility.
The brand new contract will debut with one expiry and might be obtainable on Deribit as of 27 March 2023. Moreover, the alternate has plans to launch further expiries within the coming months.
“DVOL can point out adjustments within the well being and route of the Bitcoin market, making it an important software for merchants trying to keep forward of the curve and a fantastic baseline for volatility buying and selling,” mentioned 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, in line with Coinmarketcap. On the subject of cryptocurrency choices, the platform dominates, capturing a lot of the Bitcoin and Ether choices markets. It additionally affords cryptocurrency futures devices.
????????All-time excessive BTC Choices Open Curiosity! ????????
????358k contracts
????https://t.co/ZNAt2T4AOw#Crypotoptions #Bitcoin #DeribitExchange #cryptocurrency #AlwaysOpen pic.twitter.com/gbxUv6Gh2b— Deribit (@DeribitExchange) March 15, 2023
“BTC DVOL futures are an thrilling new product that can assist merchants to hedge their positions and make the most of market volatility whereas additionally serving as a software for extra danger administration, alpha era, and portfolio diversification,” Jansen added. “This product is especially helpful for many who need publicity to volatility however don’t wish to commerce complicated choices methods.”
Timing the Market
Deribit is launching the brand new product when the cryptocurrency market has gained a powerful upward momentum following a disaster within the American banking business. Furthermore, two US banks, Signature Financial institution and Silicon Valley Financial institution, went beneath Federal Deposit Insurance coverage Company receivership, whereas one other, Silvergate Financial institution, declared voluntary liquidation.
Bitcoin gained about 36 % 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 current bull run.
#BITCOIN BREAKING BULLISH! ???????? pic.twitter.com/eqFexOLXxv
— Crypto Rover (@rovercrc) March 17, 2023
“Having DVOL futures obtainable makes working a portfolio of BTC choices much more manageable,” mentioned Greg Magadini, the Director of Derivatives at Amberdata.
“Identical 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 may also have clear Vega bets by buying and selling DVOL futures whereas avoiding the complexities of path dependency.”
