Key Points
- Bitfinex has launched perpetual contracts for Bitcoin and Ethereum volatility futures on its derivatives platform.
- The new products, based on Volmex Implied Volatility indexes, are available for trading as of April 3, 2024.
Bitfinex has announced the introduction of perpetual contracts for Bitcoin and Ethereum volatility futures on its derivatives platform, Bitfinex Derivatives. This development was officially communicated on April 3, 2024.
The platform, which is focused on derivatives, was made accessible by Ifinex Financial. Ifinex Financial is the parent company of both Bitfinex and Tether Holdings.
New Products for BTC and ETH Futures Contracts
The new products, known as Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV), are based on Volmex Implied Volatility indexes. These indexes are derived from real-time options for Bitcoin and Ethereum, indicating the expected price fluctuations over a 30-day period.
The company also stated that these perpetual contracts are counterparts to Wall Street’s VIX index. This index measures market fear based on options linked to the S&P 500 index.
Jag Kooner, the head of derivatives at Bitfinex, said that these new products provide customers with a “simple format” to trade perpetual contracts. He added that perpetual futures are the most popular format in the crypto space as they eliminate the need for a fixed expiration date.
Trading Begins April 3
Kooner revealed that these new contracts are a part of Bitfinex’s offering of over 60 perpetual futures contracts. These include cryptocurrencies, commodities like precious metals and oil, FX, and equities. He also said that the new contracts will allow the exchange to add implied volatility as another asset class on the platform.
The two products are available for trading as of April 3, 2024. The futures contracts, which are denominated, margined, and settled in Tether’s stablecoin USDT, can be traded under the ticker symbols BVIVF0:USTFO for Bitcoin and EVIVFO:USDTFO for Ethereum.
This launch of Bitcoin and Ethereum volatility futures by Bitfinex follows Deribit’s introduction of standard futures contracts linked to its Bitcoin volatility index, DVOL, 12 months ago.
