Deribit CEO John Jansen claims that "DVOL can indicate changes in the health and direction of the Bitcoin market."
Deribit, a cryptocurrency derivatives exchange, is preparing to introduce Bitcoin (BTC) volatility trading contracts.
According to the announcement shared on March 17th, BTC volatility futures will cater to traditional investors who often utilize volatility products for risk management, portfolio hedging, and speculation. This new offering will grant investors a direct means to measure and trade BTC market volatility.
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On March 17th, Deribit announced the upcoming launch of BTC DVOL futures, a derivatives contract established on the Deribit Bitcoin Volatility Index. This index calculates the implied volatility of Bitcoin (BTC) and provides a 30-day projection of investors' expectations for annualized volatility.
When talking about the matter, Deribit CEO John Jansen stated:
We’re thrilled to offer our clients access to pure BTC volatility trading through DVOL futures. DVOL can indicate changes in the health and direction of the Bitcoin market, making it an essential tool for traders looking to stay ahead of the curve and a great baseline for volatility trading.
It is worth noting that in its announcement, the company highlighted that on March 27th, it plans to launch "one expiry," with other expires planned to be established "in the coming months."
Over the last year, the broader crypto markets, including Bitcoin, have exhibited notable volatility. The term "crypto winter" is often associated with sharp declines in digital asset prices after an overly bullish phase.
Although the recent collapses of Silicon Valley Bank and Signature Bank led to record outflows from crypto investment products, regulatory clarity regarding investor deposits has allowed Bitcoin to stage a substantial relief rally.
On March 17th, Bitcoin's price exceeded $27,000 for the first time in more than nine months. At the time of writing, Bitcoin (BTC) retails for $28,342.14, recording a 4.13% increase.
