However, while these products are wholly speculative as of Monday, their use case might change after ARB tokens are officially issued to network participants. Traders and holders of spot ARB may then use futures products to hedge their spot holdings or gain exposure to ARB prices using a smaller amount of initial capital via leverage. Source AheadAirdropARBArbitrumFuturesHeatIOUMarketsToken CryptoX Portal
Crypto derivatives exchange Deribit will soon launch Bitcoin (BTC) volatility futures, giving investors a direct way to measure and trade BTC market volatility. On March 17, Deribit introduced BTC DVOL futures — a derivatives contract built on the Deribit Bitcoin Volatility Index, which measures the implied volatility of the largest cryptocurrency. Deribit’s volatility gauge provides a 30-day outlook on investors’ expectations for annualized volatility. Like other volatility products, BTC DVOL can potentially help traders with risk management, portfolio hedging or market speculation. Volatility-as-an-asset is widely traded in traditional finance, with…
The CME Group said the new event contracts on Bitcoin futures provide a limited-risk, highly transparent way for a wide range of investors to access the Bitcoin market via a fully regulated exchange. On Monday, March 13, popular derivatives trading platform CME Group announced that they have commenced the trading of event contracts on Bitcoin futures. In its statement, the CME Group said that this new product would be an addition to the company’s suite of 10 event contracts linked to its benchmark futures market. These types of contracts offer…
The price of Bitcoin (BTC) increased by 14.4% between March 12-13 after it was confirmed that financial regulators had rescued depositors in the failing Silicon Valley Bank (SVB). The intraday high of $24,610 may not have lasted long, but $24,000 represents a 45% increase year-to-date. On March 12, U.S. Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg issued a joint statement to reassure SVB depositors. Regulators also announced a systemic risk exception for Signature Bank (SBNY), an intervention designed to…
With the collapse of SVB, many commentators have been echoing the phrase that no firm is “too big to fail.” Uncertainty has continued to grip active players in the United States stock market with futures tied to major indices shedding off significant gains on Monday. The futures tied to the Dow Jones Industrial Average (INDEXDJX: .DJI) shed 276 points atop a 0.9% slump. To complement the bearish trend, the futures tied to the S&P 500 Index (INDEXSP: .INX) also dropped by 1% with that linked to the Nasdaq-100 dropping by…
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With the new offering, traders can bypass complexities involved in setting up options strategies and directly buy and sell volatility similar to trading futures tied to bitcoin’s price. The product may attract more institutional and retail investor participation, much like the Chicago Board Options Exchange’s (Cboe) VIX futures – derivatives on The Cboe Volatility Index, or VIX. The index represents the market’s expectation for volatility in the S&P 500 over the coming 30 days. Original
“It could be a case of traders fading the hype of STX and shorting, largely due to the return of deeply negative after every price rally in the last week,” Conor Ryder, research analyst at Paris-based Kaiko, told CoinDesk. “I suspect traders are betting that there isn’t a follow-up to Bitcoin NFTs and this is more of a flash in the pan.” Source
Bitcoin has surged over 45% so far this year, outperforming traditional risk assets, including Wall Street’s tech-heavy Nasdaq index, by a significant margin. Futures typically trade at a premium in a sign of leverage being skewed on the bullish side when the underlying asset is appreciating in value. Conversely, during bear markets, discounts are often observed. Source
A new decentralized exchange (dex) on Arbitrum, called Vest Exchange, was announced this past weekend, and the team that created the project said the platform aims to focus on democratizing perpetual futures. The team behind Vest further detailed that the new Arbitrum dex is backed by firms such as Jane Street, QCP Capital, and Big Brain Holdings. Vest Aims to Revolutionize Defi Perpetuals With Cutting-Edge Risk-Engine and Backing From Prominent Investment Firms The creators of a new dex platform built on the Arbitrum layer two blockchain announced on Jan. 28,…