Volatility surged on February 3, 2025, driving a significant rebound in volatility-related ETFs, including the VS TR 2x Long VIX Futures ETF (UVIX). The spike in volatility is attributed to heightened market uncertainty, which has led to increased demand for hedging instruments like VIX futures. This demand is reflected in the UVIX, which aims to deliver twice the daily performance of the long VIX futures index. The underlying VVIX index, a measure of expected volatility, saw a notable increase of 9.32%, indicating a sharp rise in market volatility expectations.
The UVIX ETF rose to $34.51, marking a 14.08% increase from its previous close.