Bitfinex Launches Bitcoin and Ethereum Volatility Futures
Key Takeaways
- Bitfinex has introduced perpetual futures that track the price movements of Bitcoin and Ethereum.
- These futures simplify individual investors’ participation in market fluctuations and avoid complex trading strategies in volatile situations.
- Futures are based on the BVIV and EVIV indices, which are similar to the VIX index.
Digital asset exchange Bitfinex has launched. Perpetual futures contracts tied to the volatility of Bitcoin (BTC) and Ethereum (ETH).
Here’s what makes perpetual futures contracts different: Trades typically occur at prices close to the underlying value of the asset and have an expiration date.
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Volatility Futures Will Help Traders Handles events that can cause price changes. retail investors You can profit from market fluctuations without complex strategies.
This future is introduced. Based on Volmex’s Bitcoin and Ethereum implied volatility indices, Known as BVIV and EVIV respectively. Similar to the VIX index in traditional financial markets, sometimes called Wall Street’s “fear gauge,” these indices track expected price volatility over the next 30 days.
Jag Kooner, Head of Derivatives at Bitfinex, said:
With the prices of many cryptocurrencies hitting record highs, increased volatility and the potential for significant declines mean these indices are more useful than ever.
An announcement from Bitfinex on April 3 highlighted the launch of these futures. Under the ticker symbols BVIVF0:USTFO and EVIVFO:USTFO, All contracts are denominated, margined, and settled in Tether (USDT), the leading dollar-pegged stablecoin.
The release also responds to this There is growing interest in cryptocurrency volatility as a tradable asset class. This follows Deribit, a cryptocurrency derivatives exchange that introduced Bitcoin volatility trading contracts in March 2023.
By providing the ability to speculate on or hedge against the volatility of BTC and ETH, Bitfinex is not only expanding the tools available to traders, but also enhancing the depth of the cryptocurrency derivatives market.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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