• Latest
LedgerX Launches ‘Bitcoin Fear Index’ to Track Price Volatility

LedgerX Launches ‘Bitcoin Fear Index’ to Track Price Volatility

January 14, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Business

LedgerX Launches ‘Bitcoin Fear Index’ to Track Price Volatility

coinnewsdaily by coinnewsdaily
January 14, 2019
in Business
0
LedgerX Launches ‘Bitcoin Fear Index’ to Track Price Volatility
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

LedgerX thinks cryptocurrency traders should be able to assess bitcoin’s volatility. And, taking a leaf out of the stock market’s book, the derivatives trading platform has built an index to track this benchmark.

The company announced Monday that it was launching the LedgerX Volatility Index (LXVX), which will track the expected volatility for bitcoin. The firm will draw data for the index from its regulated bitcoin options, which various institutions have been trading over the past year.

Juthica Chou, LedgerX’s president and chief risk officer, told CoinDesk that the LXVX is similar to the Cboe Volatility Index (VIX), a popular measure of the stock market’s anticipated volatility.

“[A volatility index] tells you the expected certainty that the market is forecasting … That’s what it tells you with respect to any market,” she explained. 

Or, put another way, the LXVX can be described as “a bitcoin fear index,” much like the VIX is referred to as the stock market fear index, she said.

Chou, who previously worked at Goldman Sachs as a volatility trader, said that the VIX was an important benchmark, and its usefulness is why LedgerX decided to build one for bitcoin.

It can allow traders and investors to monitor risk as they manage their businesses, she said.

As an example, she cited bitcoin’s volatility near the end of 2018 compared to the beginning of this year, saying:

“If you look basically since the start of the year, the LXVX is down about 20 percent so it’s down to about 68, and … this is still approximately three times the volatility of the stock market but it’s very telling in the bitcoin space because it shows that there is less of the fear and uncertainty than what existed [in] December.”

At present, the index is not a tradeable product, though building such a product is a goal further down the line. LedgerX’s institutional clients have already been able to track the benchmark for at least a few months, and it is now publicly available through LedgerX’s website.

Thriving in winter

Separately, LedgerX announced it had cleared over $500 million in bitcoin derivatives since its inception in October 2017, across more than 50,000 contracts over “a wide range of strikes,” Chou said, referring to the price at which an option may be exercised.

While other startups in the crypto space have suffered from the prolonged crypto bear market, it has actually been more beneficial for LedgerX, as it leads to greater trading activity.

“We saw, for example, a lot of put options trading in December and the end of November while the broader market was selling off,” she said. “Now that we’re bouncing back, we’re seeing a lot more call options.”

Juthica Chou, LedgerX image via CoinDesk Consensus archives

Credit: Source link

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
Tags: BusinessCryptoCrypto Business
Share76Tweet48
Previous Post

Arrington XRP Leads $1 Million Funding Round in Dapp Economy Startup

Next Post

Malaysia to Regulate ICOs as Securities Offerings from Tuesday

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
Load More
Next Post
Malaysia to Regulate ICOs as Securities Offerings from Tuesday

Malaysia to Regulate ICOs as Securities Offerings from Tuesday

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$23,002.000.40%
  • ethereumEthereum(ETH)$1,578.090.38%
  • tetherTether(USDT)$1.000.53%
  • binancecoinBNB(BNB)$306.150.93%
  • rippleXRP(XRP)$0.4108181.00%
  • cardanoCardano(ADA)$0.3848201.76%
  • dogecoinDogecoin(DOGE)$0.0887453.55%
  • matic-networkPolygon(MATIC)$1.150.75%
  • okbOKB(OKB)$38.818.31%
  • solanaSolana(SOL)$24.141.01%
  • polkadotPolkadot(DOT)$6.440.69%
  • shiba-inuShiba Inu(SHIB)$0.0000122.84%
  • litecoinLitecoin(LTC)$87.940.86%
  • tronTRON(TRX)$0.062507-0.33%
  • daiDai(DAI)$1.000.06%
  • cosmosCosmos Hub(ATOM)$13.312.02%
  • chainlinkChainlink(LINK)$7.230.76%
  • leo-tokenLEO Token(LEO)$3.75-2.08%
  • moneroMonero(XMR)$182.114.88%
  • ethereum-classicEthereum Classic(ETC)$21.730.46%
  • bitcoin-cashBitcoin Cash(BCH)$133.11-1.13%
  • stellarStellar(XLM)$0.0926631.31%
  • crypto-com-chainCronos(CRO)$0.0810420.72%
  • filecoinFilecoin(FIL)$5.26-0.31%
  • algorandAlgorand(ALGO)$0.2568443.00%
  • vechainVeChain(VET)$0.023982-0.65%
  • internet-computerInternet Computer(ICP)$5.93-0.67%
  • aaveAave(AAVE)$85.06-3.39%
  • eosEOS(EOS)$1.09-2.36%
  • elrond-erd-2MultiversX(EGLD)$44.401.48%
  • theta-tokenTheta Network(THETA)$1.08-1.73%
  • tezosTezos(XTZ)$1.11-0.19%
  • paxos-standardPax Dollar(USDP)$0.99-0.09%
  • bitcoin-cash-svBitcoin SV(BSV)$43.42-1.68%
  • huobi-tokenHuobi(HT)$5.080.61%
  • havvenSynthetix Network(SNX)$2.45-2.15%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.991.08%
  • iotaIOTA(MIOTA)$0.235909-2.42%
  • makerMaker(MKR)$656.500.47%
  • zcashZcash(ZEC)$45.05-1.43%
  • neoNEO(NEO)$8.190.23%
  • dashDash(DASH)$50.56-0.46%
  • zilliqaZilliqa(ZIL)$0.0296524.05%
  • basic-attention-tokenBasic Attention(BAT)$0.260030-0.40%
  • compound-governance-tokenCompound(COMP)$56.263.43%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • nemNEM(XEM)$0.038665-2.14%
  • kusamaKusama(KSM)$36.582.50%
  • bitcoin-goldBitcoin Gold(BTG)$17.08-1.99%
  • wavesWaves(WAVES)$2.78-2.20%
  • qtumQtum(QTUM)$2.63-1.65%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • sushiSushi(SUSHI)$1.30-0.52%
  • yearn-financeyearn.finance(YFI)$7,610.220.84%
  • golemGolem(GLM)$0.2478330.62%
  • omisegoOMG Network(OMG)$1.491.20%
  • ontologyOntology(ONT)$0.214312-1.69%
  • digibyteDigiByte(DGB)$0.010741-1.85%
  • umaUMA(UMA)$2.03-0.82%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%