By
Bena Ilyas
April 18th, 2024
LedgerX offers crypto traders its new Bitcoin volatility index to help them build their trading strategy more efficiently.
LedgerX, which is the cryptocurrency company standing behind the derivative markets for Bitcoin and regulated by the United States Commodity Futures Trading Commission, has announced its first index to track Bitcoin price changes.
LedgerX Volatility Index
The team standing behind LedgerX believes that crypto traders should have a real possibility to see and analyze Bitcoin’s volatility. That’s why they have taken a decision to ensure such an option for traders.
Just recently the company has revealed its Bitcoin (BTC) price volatility index that is known as the LXVX (LedgerX Volatility Index). The main aim of the LXVX is to help investors build their trading strategies in the Bitcoin market in the most feasible and effective way.
According to the information disclosed, the index will be based on the data from LedgerX’ option marketplace which has been used by various institutions over the previous year.
Without any doubts, the fact that this cryptocurrency asset manager is regulated by the country’s Commodity Futures Trading Commission contributes to the increase of the level of reliability towards the LXVX.
As it has been informed by LedgerX CEO, Paul Chou, the team is currently working on a white paper on the LXVX and the document will be available quite soon. Moreover, it’s worth mentioning that at the moment the key focus of the index is US-regulated option exchanges that’s why compliance with EU regulations is not guaranteed.
Company’s Vision
Speaking about this new initiative to launch the LXVX, Paul Chou stated:
“A volatility index for bitcoin was part of the original business plan going back as long as five years ago. Once we got a market we were comfortable with we decided to launch.”
The index will demonstrate how Bitcoin’s price will change (or may change) over the next months. This data can be efficiently used by a trader in order to see what to expect: losses or gains. Such a possibility will be helpful not only for experienced crypto investors but also for institutional traders that are just considering a variant of entering the market.
Despite the fact that there is some real chaos in the US equity markets, Chou states that according to the index, Bitcoin’s volatility is three times higher than the volatility of the stocks. As a result, the current volatility may stop major asset firms even if they previously planned to invest in the market.
Moreover, LedgerX is not going to provide its new index on a paid basis, firms, as well as individuals, will have an opportunity to use it absolutely free of charge. The company is said to build out some other products, as for example new derivatives, that will be tied to the index.
The LedgerX Volatility Index is already available on the LedgerX website. It provides index data on a daily, weekly, monthly and 3 months basis.