【The Fear Index Wants to Go Sustainable Too—Why Can’t It Just Copy the BTC Arbitrage Play?】
As perpetual contracts move from the crypto world to Wall Street, the most easily overlooked question is what’s actually underneath—specifically, whether there is a spot asset you can buy.
On October 2, CoinDesk cited a Bloomberg report saying that Cboe is exploring VIX perpetual futures; it’s still in the early stage, with no contract specifications or filing documents yet. Exploration is not the same as being listed.
VIX is derived from the pricing of S&P 500 options and reflects the market’s expectations for future volatility. It’s a calculated index—unlike BTC, ETH, or SOL, you can’t buy a piece of spot and store it in a wallet.
Why does this matter? When trading the spot-vs.-futures basis in crypto, you can observe two legs separately. With VIX, market makers would need to hedge using relevant options or other derivatives—making price tracking and risk matching more complex.
So scrapping the expiry date doesn’t mean holding costs simply disappear. If funding rates are used in the future, we’ll still need to see how the contract gets pulled back toward the reference value, and how deviations are handled when market conditions swing violently.
I’ll wait for the contract terms first, then discuss whether it’s more suitable for hedging. You can’t just see the words “perpetual” and blindly transplant familiar crypto strategies as-is.
Contracts with the same name could be entirely different businesses underneath.
The image shows a stock photo of a Wall Street streetscape.
$BTC $ETH $SOL #Trading Mechanism
Click my avatar to view live trades with orders
As perpetual contracts move from the crypto world to Wall Street, the most easily overlooked question is what’s actually underneath—specifically, whether there is a spot asset you can buy.
On October 2, CoinDesk cited a Bloomberg report saying that Cboe is exploring VIX perpetual futures; it’s still in the early stage, with no contract specifications or filing documents yet. Exploration is not the same as being listed.
VIX is derived from the pricing of S&P 500 options and reflects the market’s expectations for future volatility. It’s a calculated index—unlike BTC, ETH, or SOL, you can’t buy a piece of spot and store it in a wallet.
Why does this matter? When trading the spot-vs.-futures basis in crypto, you can observe two legs separately. With VIX, market makers would need to hedge using relevant options or other derivatives—making price tracking and risk matching more complex.
So scrapping the expiry date doesn’t mean holding costs simply disappear. If funding rates are used in the future, we’ll still need to see how the contract gets pulled back toward the reference value, and how deviations are handled when market conditions swing violently.
I’ll wait for the contract terms first, then discuss whether it’s more suitable for hedging. You can’t just see the words “perpetual” and blindly transplant familiar crypto strategies as-is.
Contracts with the same name could be entirely different businesses underneath.
The image shows a stock photo of a Wall Street streetscape.
$BTC $ETH $SOL #Trading Mechanism
Click my avatar to view live trades with orders
