It's not something Vanguard would do, but I'm wondering if there's a good way to trade on Bitcoin's volatility?
Matt Levine has written about how buying convertible bonds from Microstrategy is sort of doing this [1] but it seems complicated to do.
> This is the more practical meaning of hedging your stock-price risk. It means that every day the stock moves around and you rebalance your hedge. When the stock goes up, you sell some stock at high prices. When the stock goes down, you buy some stock at low prices. Hedging the convertible means buying stock low and selling it high.
...
> a convertible bond is a bet on volatility: The more the company’s stock bounces around, the more money convertible arbitrageurs can make.
Matt Levine has written about how buying convertible bonds from Microstrategy is sort of doing this [1] but it seems complicated to do.
> This is the more practical meaning of hedging your stock-price risk. It means that every day the stock moves around and you rebalance your hedge. When the stock goes up, you sell some stock at high prices. When the stock goes down, you buy some stock at low prices. Hedging the convertible means buying stock low and selling it high.
...
> a convertible bond is a bet on volatility: The more the company’s stock bounces around, the more money convertible arbitrageurs can make.
[1] https://archive.is/S9kOi