The product will be given to investors through a new entity called VelocityCapital Management.
The new entity has been launched out of the firms work providing the CBOE Volatility Index (VIX) based volatility exchange traded products to institutional investors.
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The principals of VelocityShares are based on the profitability of volatility that has been recognized specifically through the CBOE Volatility Index (the VIX) during crashes in developing their existing volatility products.
Regarding the new product, Nick Cherney, chief investment officer, VelocityShares said "We spent a lot of time educating institutional investors on tail risk hedging solutions; it was through this process and speaking with many clients that would prefer not to manage daily trading that led directly to the new entity."
According to Cherney, the VIX futures based strategy brings down the embedded cost by moving away from options based approach.
Further, though the VIX is US-based, the firm is taking a global approach, for which it has hired Daniel Saieh as managing director and head of Latin American sales.
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By GlobalDataSaieh, who is a veteran having 20 years of experience will be focused on working with institutional investors in Latin America. Earlier, he was the director of institutional business Latin America at Blackrock.
Additionally, Daniel Aronson and Andrew Hicks have also been appointed as a director and vice president respectively.
