Bitcoin continues to attract investors' attention as crypto volumes skyrocket to record highs. CryptoCompare's latest Exchange Review reported an incredible surge in trading activity: derivatives volume doubled to an all-time high of $1.32tn and spot volume increased by 60% to a monthly total of $906bn.
CME's derivatives volumes shot up by 76.8% to $17.1bn and its open interest climbed to $962mn (up 62%), signalling an increasing interest in BTC from institutional traders.
Driven by the ever-growing appetite for Bitcoin, we recently launched the Bitcoin Volatility Index developed in partnership with leading industry expert Prof. Carol Alexander and her team at the University of Sussex Business School. This is the world's first index that measures the implied volatility of bitcoin and paves the way for bitcoin futures and a range of volatility-linked exchange traded products.
CryptoCompare is also delighted to announce the launch of the Weiss MVIS Top Tech Adoption Rating Index (ticker: MVWTAR) today, with its partner MV Index Solutions GmbH (MVIS®), in collaboration with Weiss Crypto Ratings, the only financial ratings agency that provides a combination of five critical advantages for users. The Weiss MVIS Top Tech Adoption Rating Index tracks the performance of the largest digital assets, which have a top tech adoption rating by Weiss Ratings LLC (all digital assets with a Weiss Tech Adoption Rating of B- or higher). This index offers factor-based investors a more efficient way to capture digital asset market performance for their portfolio construction.
November Exchange Review - Key Takeaways
- Top-Tier exchanges (graded AA-B in our Exchange Benchmark) volumes increased 78.2% to $619.0bn while Lower-Tier volumes increased 30.0% to $287.4bn. These traded a daily maximum of $45bn on the 24th of November almost double the previous record for this year ($23.4bn on the 13th of March).
- Volume from 15 largest Top-Tier exchanges increased 114% on average. Binance (Grade A) was the largest Top-Tier exchange by volume in November, trading $176.2bn (up 133%). This was followed by Huobi Global (Grade BB) trading $72.1bn (up 73%), and OKEx (Grade BB) trading $45.9bn (up 43%). Exchanges Coinbase (AA), Kraken (A) and Bitfinex (A) followed with $30.0bn (up 166%), $16.6bn (up 156%) and $12.8bn (up 198%).
- Derivatives volumes doubled in November to an all-time monthly high of $1.32tn. Derivatives exchanges also set a new all-time daily volume record on the 26th of November with $93.36bn. This daily maximum breaks the previous record set on 12th March 2020 ($56.87bn) by an additional 66%.
Bitcoin Volatility Index Methodology & Use Cases
CryptoCompare recently launched the Bitcoin Volatility Index which is the first benchmark index to quantify bitcoin implied volatility, developed in partnership with leading industry expert Prof. Carol Alexander and her team at the University of Sussex Business School.
The Bitcoin Volatility Index could be used as the settlement price for Bitcoin volatility futures contracts and, if these futures become actively traded, their market prices may be used to construct indicative values for a diverse set of leveraged, direct and inverse Bitcoin volatility ETFs and other exchange-traded products.
Additionally, this type of implied volatility index is a model-free fair value for variance swaps, which are traded OTC in traditional markets and on-chain for bitcoin.
This article explains in more detail how the Bitcoin Volatility Index works and what some of its use cases are.
