LedgerX Launches ‘Bitcoin Fear Index’

| Publish date: 01/15/2019
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In the latest cryptocurrency news, LedgerX firmly believes that digital currency traders must have the ability to assess Bitcoin’s volatility. As such, the company known for being a derivative trading platform has developed an index that is meant to track this specific benchmark.

Introducing the LedgerX Volatility Index                  

The company recently announced its plans to launch the aforementioned index, which is called LedgerX Volatility Index or LXVX. The latter is said to track any expected volatility for the world’s leading cryptocurrency. The firm is also expected to draw data for the index, which will be taken from its own regulated BTC options. Interesting, a good number of institutions have used the latter in trading over the past year.

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LedgerX’s very own president and chief risk officer named Juthica Chou said that the company is akin to the Cboe Volatility Index or VIX. It is basically a titular measure of the stock market’s anticipated volatility.

Chou mentioned that this type of index is meant to tell people about expected certainty, which is something that the market as a whole is forecasting. It is particularly what it tells individuals with respect to any market.

LedgerX Volatility Index Vs. VIX

To put it simply, LedgerX’s LXVX can be defined as “a Bitcoin fear index.” And this can very much be likened to the VIX that is referred to as the stock market fear index. They kind of work in a similar process, but the main difference is the aspect they cover respectively.

Chou, who once worked as a volatility trader at Goldman Sachs, mentioned that VIX became a significant benchmark. She also suggested that the platform’s usefulness is the sole reason why LedgerX decided to develop one for the world’s leading digital currency.

She further said that the platform will enable both investors and traders to monitor risks as they continue managing their own businesses. To give an example, she talked about BTC’s volatility near the end of last year and compared it to the beginning of 2019.

Chou said that since the start of this year, LXVX is down to at least 20 percent; hence, it arrived at 68. Still, it is averagely three times the volatility of the stock market. Interestingly, according to her, it is quite telling in the Bitcoin realm due to the fact that it highlights “less of the fear and uncertainty” than what truly existed in the month of December last year.

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