Deribit, the world’s largest Bitcoin and Ethereum options exchange by trading volume, has announced its intentions to offer Bitcoin volatility futures. Luke Strijers, Deribit’s Chief Commercial Officer, told verifiable sources today, March 1, 2023, that users would be able to trade the Bitcoin volatility index (BTCDVOL) by the end of March.
The volatility futures will be settled, margined, and priced in USDC, a stablecoin pegged to the US dollar. Luke stated that the DVOL would enable traders to hedge positions and capitalize on market volatility. While crypto traders have previously relied on straddle and strangle methods to predict market volatility, this new product simplifies the process.
Initially, investors will only be allowed to trade one-month expiry futures, but the platform plans to expand to five-day expiration soon. This new product is expected to attract more users to the platform, particularly those who don’t want to trade options strategies.
In November 2022, Deribit’s hot wallet was hacked, and $28 million was stolen. That was the first time the platform had experienced an attack. Deribit confirmed that the hack did not affect its financial position or operations, and only BTC, ETH, and USDC wallets were compromised. The company temporarily halted withdrawals for security checks and measures.
Deribit was founded in 2016 in the Netherlands by John Jansen. It was the first platform to offer Bitcoin options and has since added Ethereum and Solana derivatives. The firm differentiates itself from other top exchanges, such as Binance, despite being early to digital assets by offering only derivatives services.
However, Debris is still unregulated, which can pose a concern to investors due to the increased regulatory sanctions across the crypto industry. At the time of writing, Deribit’s trading volume was $480 million, according to Coingecko.
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