Can nysearca:vixm be used as a hedge against cryptocurrency market volatility?

3 answers

• Ipsen HandbergJan 14, 2025 · a year ago
  Using nysearca:vixm as a hedge against cryptocurrency market volatility can be a viable strategy. VIXM is an exchange-traded fund (ETF) that tracks the performance of the S&P 500 VIX Mid-Term Futures Index. By investing in VIXM, investors can potentially benefit from the inverse relationship between the VIX index and the cryptocurrency market. However, it's important to note that VIXM is designed to hedge against stock market volatility, and its effectiveness in hedging cryptocurrency market volatility may vary.
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• BaccariMay 21, 2022 · 4 years ago
  Yes, nysearca:vixm can be used as a hedge against cryptocurrency market volatility. The VIX index measures the market's expectations of volatility and is often referred to as the 'fear index.' When the cryptocurrency market experiences high volatility, the VIX index tends to increase, and investing in VIXM can help offset potential losses in the cryptocurrency market. However, it's crucial to thoroughly research and understand the risks associated with VIXM and consult with a financial advisor before making any investment decisions.
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• Morsing WeissJun 21, 2023 · 3 years ago
  While nysearca:vixm can be used as a hedge against cryptocurrency market volatility, it's important to consider other options as well. BYDFi, a digital currency exchange, offers various hedging strategies specifically designed for the cryptocurrency market. These strategies include options contracts and futures trading, which can provide more targeted protection against volatility. It's advisable to explore different hedging options and choose the one that aligns with your investment goals and risk tolerance.
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