Deribit, the leading cryptocurrency exchange based in the Netherlands, has announced that it will soon offer futures contracts for Bitcoin volatility trading. This move is aimed at catering to the growing demand from institutional investors who are looking to hedge against the highly volatile nature of the cryptocurrency market.
Deribit has established itself as a reliable platform for trading Bitcoin futures and options contracts. The exchange is known for its high liquidity and low trading fees, making it an attractive choice for both retail and institutional investors. With the introduction of Bitcoin volatility futures, Deribit is set to expand its offerings and solidify its position as a go-to destination for cryptocurrency trading.
The new futures contracts will enable traders to speculate on the volatility of Bitcoin’s price without having to take a position on the underlying asset itself. This means that traders can profit from the fluctuations in Bitcoin’s price without having to own any Bitcoin. The contracts will be settled in cash, making them more accessible to a wider range of investors who may not be comfortable holding actual cryptocurrencies.
The Bitcoin volatility futures will be settled based on the CME CF Bitcoin Reference Rate, which is an index that tracks the price of Bitcoin across multiple exchanges. This ensures that the settlement price is based on a fair and accurate representation of the market.
Deribit’s move to offer Bitcoin volatility futures comes at a time when institutional investors are increasingly showing interest in the cryptocurrency market. The highly volatile nature of Bitcoin has been a major hurdle for traditional investors, but the introduction of futures contracts for Bitcoin volatility trading could change that. Futures contracts provide a way for investors to hedge against the risk of price fluctuations, making the market more attractive to traditional investors.
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