LedgerX, institutional trading and clearing platform, introduced the LedgerX Volatility Index (LXVX) to track the bitcoin volatility. The index will be based on the data received from the regulated Bitcoin options. These assets had been actively traded within 2018.
As the company representative noted, the new index will show anticipated changes of bitcoin rate in the market. For example, similar data is provided by popular market instrument – CBOE Volatility Index.
The LVIX is an important indicator for traders in the stock market, and now the cryptocurrency market players have got a similar tool. As a result, they will be able to monitor the fluctuations and manage their risks throughout their operations. For reference, only platform's institutional traders enjoyed the index earlier. At present, this index is available for everybody.
The representative of LedgerX tried to explain the model of the index taking bitcoin fluctuations in 2018. Specifically, the LXVX dropped in early 2018 though remained above the volatility of the stock market. Still, it was quite informative as indicated decreased fear in the bitcoin market.
LedgerX is yet to launch a commercially available product tied to the LXVX.
Besides, it was also reported that the company cleared above $500 million in bitcoin derivatives since the business launch (October 2017) with the number of signed contracts exceeding 50,000 over the period under review.