The VS TR 2x Long VIX Futures ETF (UVIX) is experiencing downward pressure due to a decline in implied volatility expectations. Implied volatility, a key driver of VIX futures, reflects market sentiment about future price fluctuations. When market participants anticipate lower volatility, demand for options decreases, leading to a drop in implied volatility. This trend is evident as the current price of the VVIX, a measure of volatility in VIX options, has decreased by 2.58%. The market's complacency and reduced demand for volatility protection are contributing to the ETF's performance.
The UVIX ETF is currently priced at $3.34, marking a 5.50% decrease from its previous close.