Crypto’s Deribit to Offer Futures for Bitcoin Volatility Trading

Suvashree Ghosh, Bloomberg News

The Bitcoin logo on the window of a cryptocurrency automated teller machine (ATM) kiosk in Antwerp, Belgium, on Monday, June 6, 2022. Bitcoin has been trading around the $30,000 level for weeks now, defying predictions of a potential further decline but also struggling to gain upward momentum as the broader US market has also taken a beating. Photographer: Valeria Mongelli/Bloomberg , Bloomberg

(Bloomberg) -- Deribit, the largest Bitcoin and Ether options exchange, plans to launch futures contracts to facilitate Bitcoin volatility trading.

The BTC DVOL futures will be built on the Deribit Bitcoin Volatility Index, a measure of implied volatility in the market for the biggest digital asset, the company said in a statement earlier this week.

The futures can help traders with portfolio hedging, risk management, alpha generation and exploiting market volatility, Deribit’s Chief Executive Officer John Jansen said in the statement.

Bitcoin has been on a tear this year, rebounding more than 50% following a deep rout that saw it plunge from almost $69,000 in 2021 to as low as $15,485 in November last year after the collapse of the FTX exchange.

--With assistance from Olga Kharif.