Cboe Plans to Introduce Perpetual VIX Futures in Crypto Markets
- Cboe aims to convert the VIX into a perpetual trading product, allowing for continuous trading without expiries.
- Current VIX/USDT perpetual swaps are available on platforms like Gate, but they face low liquidity and volume.
- The introduction of VIX futures could increase participation in volatility markets and improve liquidity.
- Funding payments remain a cost factor, as the index is a mathematical construct rather than a tangible asset like bitcoin.
- Analysts highlight that removing expiry does not eliminate hedge costs or basis risk for market makers.
The potential launch of perpetual VIX futures signifies a merging of traditional finance with crypto structures, aiming to support advanced volatility products. Increased trading activity could enhance the alignment of various VIX products and S&P derivatives.
Cboe’s initiative reflects the rapid evolution in financial markets, with plans for perpetual products that could reshape how traders engage with volatility indices like the VIX. (Source)
