Thus far, no exchange traded products related to digital currencies have been approved by U.S. regulators, but industry observers believe that trend is set to change following the debut of bitcoin futures on the Cboe and CME in December.
Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.
REX Shares launched its first exchange traded products, REX VolMAXX Long VIX Weekly Futures Strategy ETF (Cboe: VMAX) and the REX VolMAXX Inverse VIX Weekly Futures Strategy ETF (Cboe: VMIN), in May 2016.
VMAX seeks to provide investors with exposure to the implied volatility of the broad-based, large-cap U.S. equity market. VMIN seeks to provide investors with inverse exposure to the implied volatility of the broad-based, large-cap U.S. equity market.
For more information on the cryptocurrency market, visit our Bitcoin category.