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Bitfinex Derivatives Rolls Out a New Product: Traders Now Have Access to BTC & ETH Volatility Futures

Bitfinex Derivatives introduces new BTC and ETH volatility futures

Cryptocurrency exchange Bitfinex is taking proactive steps to address the recent surge in market volatility by expanding its trading tools. In response to the volatility spike in crypto markets, Bitfinex has introduced new Bitcoin (BTC) and Ether (ETH) volatility futures. These new derivatives are part of Bitfinex's derivatives platform, Bitfinex Derivatives, provided by iFinex Financial.

The newly launched perpetual futures contracts are based on the Volmex Implied Volatility indices, specifically the Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV). These indices track the 30-day expected volatility or implied volatility of BTC and ETH options contracts.

Jag Kooner, Bitfinex's head of derivatives, highlighted the significance of these indices, stating:

"The creation of these indices allows our customers to not only monitor but actually trade the implied volatility of Bitcoin and Ether in a simple perpetual format." 

Perpetual futures, also known as perpetual swaps, are derivative contracts without an expiration date, enabling traders to speculate on the future price of an asset.



Perpetual futures offer flexibility for retail and institutional investors

Kooner emphasized the versatility of perpetual futures in the crypto space, noting that they make for the "most tradable format" compared to dated futures contracts. By tracking the 30-day implied volatility in Bitcoin and Ether options contracts, these new contracts cater to both retail and institutional investors.

The introduction of these new contracts expands Bitfinex's offerings to over 60 perpetual futures contracts, covering not only cryptocurrencies but also commodities, FX, and equities. Kooner added, "These new contracts will allow us to add implied volatility as another asset class," further diversifying Bitfinex's product portfolio.

The decision to introduce these new trading tools comes amidst cryptocurrencies hitting new all-time-high prices. With the likelihood of increased volatility and significant drawdowns, the introduction of volatility futures provides traders with additional utility and flexibility in managing their positions.