The term contracts linked to the implicit volatility indices of Volmex (BTC) and Ether (ETH) have recorded a volume of cumulative negotiation of more than $ 10 million since their beginnings on the trading platform with decentralized leverage.
The rapid increase to more than $ 10 million shows that traders are increasingly engaging with sophisticated derivatives linked to volatility for risk management, looking beyond pricing speculation.
The BVIV measures implicit or expected volatility of options in Bitcoin over a period of four weeks. Eviv represents the same for ether. The two clues decreased sharply during the recent bull race, suggesting a potential evolution in gauges for fear of the VIX type.
The term contracts on volatility involves betting on the expected amount of price fluctuation in the underlying assets over a specified future period, rather than predicting its management.
Essentially, you speculate on how the market will be “bumpy” or “calm”, allowing you to take advantage or cover yourself against anticipated uncertainty without having a directional view of the price of the asset.
“BVIV and Eviv Perpetuals of Volmex were launched on GTRADE (gains) a month ago and have already exceeded the volume of $ 11 million – an important step,” said Cole Kennelly, Cole Kennelly, founder and CEO of Volmex Labs in Coledesk.
Kennelly has added that volatility -related term contracts improve user experience, allowing traders to bet on price turbulence while bypassing the complexities involved in volatility -ordered options that require constant monitoring of various variables, including Greeks, prices of titles or expirations.
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