RabbitVectorStory
Cboe explores never-expiring VIX futures, crypto-style
No clear lean
Interesting industry development, not something that moves crypto prices directly
What happened
Cboe, a major traditional exchange, is reportedly looking into creating a version of VIX futures (contracts that bet on stock market volatility) that never expire, instead of the usual contracts that expire on a set date. This structure is basically borrowing the 'perpetual futures' idea that crypto exchanges made popular.
Why it matters
It's a sign that a trading tool crypto pioneered is now interesting enough that traditional finance wants to copy it, which is a quiet nod of legitimacy to how crypto markets are built.
Should I do anything?
Nothing to do here. This is about stock market tools, not your crypto holdings, so it's just background news.
Terms used
- VIX
- An index that measures how much volatility (ups and downs) traders expect in the stock market
- perpetual futures
- A type of contract, invented in crypto trading, that lets you bet on a price without the contract ever expiring
- futures
- A contract to buy or sell something at a set price on a future date, often used to bet on price moves