Why Bitcoin's Vol Index Is Already Pricing In the Odds of the Clarity Act Passing

**Cole Kennelly** (0:00)
In general, I think that Bitcoin is bonafide and clearly under the CFTC's remit based on previous administrations and the regulatory seats and things that they've said. And so Bitcoin is very clearly a commodity. I think ETH is also very similar in that regard. But a lot of the things that are built on top of Ethereum and Solana stand to benefit, and maybe things like Hyperliquid and lighter and other stand to benefit from the Clarity Act and the increased clarity in the ecosystem. I think that it's nebulous how certain things are regulated, what is security, what is a broker. And the Clarity Act brings transparency and clarity to those areas. And so I do think that Ethereum and Solana ecosystems, Hyperliquid, have a lot to gain from this act, the statute going through.
And it's very interesting to see how the market will react to that. I mean, you've seen in recent days that on a seven day timeframe, Ethereum is up almost a percent and Bitcoin is roughly up half a percent.

**Steven Ehrlich** (1:06)
Hi, everyone. Welcome to another episode of Bits and Bips the Interview. My name is Steve Ehrlich. I'm the head of research at SharpLink and as always, your host. Got a lot to talk about today. Clarity is hitting the final stages. We got to see if it's going to get over the finish line. And there's a lot of volatility in markets as traders try to hedge slash take advantage of what may or may not happen. We're going to get into all of it. But before we do, as always, just a little bit of housekeeping. Nothing that you see or hear on this program is financial or investment advice. For full disclosures, please see unchainedcrypto.com/bits and Bips.
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**SPEAKER_3** (2:18)
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**Steven Ehrlich** (3:17)
All right, welcome back. So I'm very pleased to bring in my guest for today, Cole Kennelly. Cole is the CEO and founder of Volmex Labs, an analytics firm that provides some of the key indicators of sort of how traders are pricing market volatility. So welcome, Cole.

**Cole Kennelly** (3:37)
Hey, Steve. Great to be here. Thanks for having me.

**Steven Ehrlich** (3:40)
Yeah, absolutely. And this is a great way to have you because of all the volatility that I mentioned before in my initial remarks. But before we get into sort of what you're seeing on your platform, I'd like for you to just briefly give like the one or two minute overview of your company and in particular, the products that you provide.

**Cole Kennelly** (4:00)
Yeah. So we build Volmex, Volmex Labs. We have created the BVIV index, the BVIV-Us index and the EVIV index, which are three flagship indices. Really, we're a benchmark index company. We provide financial benchmark indices. We license them to the likes of Polymarket, Bitfinex, TradingView, Bloomberg Terminal and others soon. Essentially, our flagship product is a volatility index that measures the 30-day implied volatility of the Bitcoin market or the IBIT market in the case of BVIV-Us.
EVIV is the most longest running, ubiquitous, widely adopted standard for this type of product. We have many other families of indices that are live today and coming soon. And essentially, we've built the Bitcoin volatility index standard for the digital assets crypto market.

**Steven Ehrlich** (4:51)
So I think that kind of summarizes what you said.