(Bloomberg) – A “fear gauge” for bitcoin registered its first trade.
The T3i BitVol Index transaction, which measures bitcoin’s 30-day implied volatility, consisted of a 1-for-2 option spread due March that was purchased at zero cost, according to a T3 statement. Quantitative crypto asset management firm LedgerPrime was the market maker, according to the statement, which added that the counterpart is a leading global macro crypto asset manager.
Cryptocurrency investors “will now be able to trade volatility as a distinct asset class,” said Simon Ho, CEO of T3Index.
The price of bitcoin has skyrocketed in recent months, with the cryptocurrency reaching a record high of more than $ 58,000 last month as big investors flock and the asset class matures. In recent years, the asset class has matured, including through further establishment of crypto derivatives such as those on regulated exchanges such as CME Group Inc.
The BitVol index is derived from trading options on the cryptocurrency and is built using the simple variance exchange methodology. It was launched in July and is designed to use the full range of option strike prices to better capture the market’s perspective on expected volatility.
Nota Original:A VIX-Like Gauge for Bitcoin Sees Its First-Ever Options Trade
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