Alameda-backed Volmex Labs launches bitcoin and ether volatility indexes: Exclusive

Quick Take

  • Volmex Labs launched the Volmex implied volatility index (VIV) on Tuesday.
  • The firm hopes to emulate the Cboe’s VIX volatility index. 

Volmex Labs, a crypto volatility protocol backed by investments from Alameda Research and CMS Holdings, launched two volatility indexes for bitcoin and ether on Tuesday. 

The firm's product hopes to emulate the Cboe Volatility Index (VIX), by generating a 30-day forward projection of volatility.

The Volmex Implied Volatility index, or the VIV, measures a constant 30-day forward projected of volatility of bitcoin and ether options markets, using real-time crypto call and put options.

The firm uses multiple data sources including Deribit and OKX in its projections, combined these two exchanges account for over 90% of the current bitcoin open interest in options and almost 100% of the ether options open interest – although the CME is set to launch ether options. 

LedgerPrime Chief Investment Officer Shiliang Tang said his firm is excited by the product and the "gap it will fill in the market by being a pure play volatility tracker." Tang's firm is an investor in Volmex, along with Robert Leshner's Robot Ventures, CMS Holdings, and Orthogonal Trading.

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