The VS TR 2x Long VIX Futures ETF (UVIX) closed on January 2nd at $3.53, up 3.82%, as market volatility expectations surged amid disappointing economic data from Asia and recent central bank actions. The underlying VVIX index, which measures the volatility of volatility, rose by 2.50% to 106.94. Asian markets began the year on a weak note, with Chinese stocks declining due to a lackluster PMI report and Japan facing mixed economic forecasts, contributing to a risk-off sentiment. This has led investors to seek protection against potential market downturns, boosting demand for volatility-related instruments. Additionally, the recent Federal Open Market Committee (FOMC) meeting concluded with a 25 basis point rate cut and signaled fewer rate cuts in 2025, adding to market uncertainty and leading to declines in major US indices.