What Is DVOL?
DVOL (Deribit Implied Volatility Index) is a volatility index that measures the 30-day forward-looking annualized implied volatility of Bitcoin and Ethereum options. It is calculated using a variance swap methodology applied to options across the two expiries nearest to 30 days, with the resulting variance interpolated and smoothed via an exponential moving average. DVOL serves a similar role for crypto markets as the VIX does for equities, providing a single number that captures the market’s expectation of future price swings.
Traders use DVOL and DVOL futures to gain pure exposure to volatility movements independent of directional price risk, enabling strategies such as volatility hedging, selling volatility, and mean reversion trading on vol levels. DVOL is published by the Deribit exchange.
See also