Betting on turmoil: Deribit launches Bitcoin volatility futures

Today marks an important milestone in the ever-evolving world of cryptocurrency derivatives. Deribit, an established digital asset derivatives platform, has launched its much-anticipated Bitcoin volatility futures product. The new product will provide investors with a new way to speculate on the changes in the price of Bitcoin.

Volatility products are nothing new in the traditional investment world. Think of traditional volatility products like the VIX Index or other derivatives such as options contracts. These products provide investors with the ability to hedge their positions, to manage risk, and to speculate on market movements. Now, with the introduction of Bitcoin Volatility Futures, investors can similarly speculate on the price movements of Bitcoin.

The new product on Deribit enables investors to take a view on the volatility of Bitcoin in a future time frame. This gives investors the ability to not only bet on the direction of Bitcoin, but also on market spin. For example, an investor may take a view that the market will be a lot more volatile in the coming months, and thus bet on higher volatility. This type of bet allows investors to capitalize on the increased volatility of the Bitcoin market.

Deribit’s Bitcoin Volatility Futures product is being launched on the back of a long-term surge in Bitcoin volatility. The cryptocurrency has seen its fair share of ups and downs over recent years, and as investors look for ways to capitalize on this volatility it makes sense for them to turn to a familiar tool – derivatives.

With the launch of the new product, the derivatives platform hopes to offer investors the ability to bet on both the directional movement and the market spin of Bitcoin. As the platform continues to add new products, it’s likely that more investors will be enticed by the potential of volatility-based products as a way to speculate on the cryptocurrency market.

So, if you’re an investor eager to capitalize on the Bitcoin market, then it might be worth keeping an eye on Deribit’s new product. Betting on the Bitcoin price by itself can be risky, but betting on the degree of volatility in the market could provide a more attractive option.

Happy Trading!