Marex launches crypto volatility indices targeting institutional investors

Marex has introduced a new suite of quantitative investment strategy (QIS) indices tracking Bitcoin and Ethereum volatility, targeting institutional investors. These two strategies, one for Bitcoin and one for Ethereum, are designed to capture the difference between what traders expect volatility to be and what actually happens, using a rules-based methodology.

The launch broadens Marex's Institutional QIS product range into digital assets, bringing strategies typically used in more traditional asset classes to the cryptocurrency market.

The indices rely on listed options and perpetual futures on Bitcoin and Ethereum, traded on the Coinbase platform. Marex chose Coinbase for its high liquidity, strong institutional trading infrastructure, and ability to support round-the-clock risk management. Walter Cegarra, Marex's Head of Institutional Solutions, Financial Products, states that the firm has utilized its existing quantitative research, structuring, and trading skills to create systematic strategies for digital assets.

These indices aim to provide another source of risk premium for both traditional institutional investors and those in the crypto sector looking for a diversified investment portfolio. Marex has partnered with MSCI, via Compass Financial Technologies, to act as the independent index calculation agent and administrator. This ensures strict oversight of index calculations and publication, all within a regulated environment.

Liz Martin, Head of Coinbase Institutional, highlights that this partnership will extend quantitative investment strategies to digital assets, while also giving traditional institutions access to crypto markets. Guillaume Le Fur, MSCI's Managing Director for Index, says the collaboration will apply MSCI's benchmark administration standards to these new indices.

This move is part of Marex's larger strategy to expand its Institutional QIS business into asset classes where its trading, structuring, and market access strengths can support systematic investment approaches.