Miami International Holdings and T3 Index today announced the launch of two new ConvexityShares exchange traded funds developed to provide investors with access to a new product designed to manage volatility exposure.
The ConvexityShares ETFs include the ConvexityShares 1x SPIKES Futures ETF ((SPKX )) and the ConvexityShares Daily 1.5x SPIKES Futures ETF ((SPKY )). These ETFs will be listed for trading on NYSE Arca Inc.
ConvexityShares ETFs offer exposure to the SPDR S&P 500 ETF Trust (SPY ) volatility and track the SPIKES Futures Short-Term Index (SPKF), which uses input prices of the front two SPIKES Futures contracts to measure a daily rolling position to provide exposure to the front end of the SPIKES Futures curve.
“MIAX is pleased to partner with T3 Index to provide a new way to trade volatility,” said Thomas P. Gallagher, chairman and CEO of MIH, in a news release. “The launch of ConvexityShares ETFs is an important milestone for the SPIKES Volatility Products franchise, bringing much-needed competition to the marketplace and providing a powerful tool to help market participants manage risk and capitalize on changes in market volatility.”
Joseph W. Ferraro III, president of MIAX Futures, added in the release: “MIAX and T3 Index have developed a strong partnership as we developed and launched our portfolio of SPIKES Volatility Products. This launch expands our volatility trading ecosystem and showcases our commitment to offer new and innovative products to the trading community.”
The launch of the ConvexityShares ETFs offers traders and investors a new, alternative tool to hedge and capitalize on volatility. It is an enhancement to the current SPIKES Volatility Products portfolio that T3 and MIAX have created. Launched in 2019, the SPIKES Volatility Index measures the expected 30-day volatility in SPY and is the basis for SPIKES Volatility Products.
“In an increasingly volatile and complex market, the launch of ConvexityShares ETFs provides more choice and opportunity in how traders hedge volatility,” said T3 Index CEO Simon Ho. “Both the SPIKES Volatility Index and the SPIKES Futures Short-Term Index seek to offer new indexes that are reliable, accurate, and an alternative to what’s currently available for volatility traders.”
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