Share this article
Crypto Options Exchange Deribit to Offer Bitcoin Volatility Futures
Futures tied to Deribit's bitcoin volatility index, DVOL, will go live at the end of March.
Updated Mar 1, 2023, 3:25 p.m. Published Mar 1, 2023, 7:24 a.m.
Make us preferred on Google
Deribit, the world's largest crypto options exchange by volume, will soon launch bitcoin volatility futures, offering digital asset investors a simpler way than options to hedge against market volatility.
Futures tied to Deribit's forward-looking bitcoin volatility index (DVOL) will be available to Deribit under the ticker BTCDVOL from the end of March, the exchange's chief commercial officer, Luuk Strijers, told CoinDesk on Wednesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
DVOL, launched in early 2021, measures bitcoin's 30-day implied volatility calculated using Deribit's options order book. Implied volatility refers to the options market's expectation for price turbulence over a specific period.
Volatility trading involves betting on the future stability of an asset instead of taking a view on the direction of future price moves. Going long or buying volatility means betting the asset will see big moves in either direction.
Crypto traders have been using options strategies like straddle and strangle to express their views on volatility. However, these strategies are complex and require buying and selling options at various strike prices and high risk tolerance.
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.
"DVOL futures are an exciting new product that will allow traders to hedge their positions & general risk management, take advantage of market volatility, but also the alpha generation and portfolio diversification," Strijers said. "This product is particularly useful for those who want exposure to BTC volatility but do not want to trade complex options strategies."
Deribit users will initially get to trade only one-month expiry futures with the exchange planning to expand the offering to five expiries later.
The volatility futures will be linear and priced, margined and settled in Circle's U.S. dollar-pegged stablecoin USDC. Linear contracts offer a payoff that is related linearly to the spot price of the underlying asset.
Traders should note that DVOL futures, like other derivatives, are leveraged products that can amplify both gains and losses.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
