Bitfinex Launches Volatility Futures on Bitcoin and Ether, Giving Users More Options

Bitfinex Derivatives has added a new function allowing investors to trade based on the implied volatility of Bitcoin and Ether.

This trading will be made available as a different asset class for investors. Notably, Bitfinex is improving its trading tools based on the unstable nature of the crypto market.

As such, these new contracts have joined the list of over 60 perpetual futures already available on the Bitfinex Exchange.

More Details on Bitfinex Volatility Futures

The Bitfinex exchange platform, Bitfinex Derivatives, launched two new perpetual futures contracts for Bitcoin and Ether. These new contracts were created based on the Volmex Implied Volatility Indexes.

The Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV) are the new products available to investors.Remarkably, these indexes track the 30-day expected volatility and the implied volatility of the BTC and ETH options contracts.

BVIV-Perp and EVIV-Perp are now live for trading on @bitfinex.

Volmex Global, a wholly-owned subsidiary of @volmexfinance Labs, has collaborated with @Bitfinex Derivatives, to launch the first perpetual futures contracts on #BTC and ETH implied volatility indices.... pic.twitter.com/O718i83cm2

- Volmex (@volmexfinance) April 3, 2024

According to a post by Volmex Finance on X, the BVIV and EVIV perpetual contracts are now available for live trading on Bitfinex. Also, both contracts can be traded with up to 20 times leverage, which could attract more users to the product.

Remarkably, Perpetual futures or swaps are derivative contracts that enable traders to speculate on the future price of an asset with no expiration date. With implied volatility futures, traders bet on how much they expect the value of an asset to change over a certain period.

If investors expect much price changes for an asset, the volatility rises. However, if the asset's price is expected to be relatively unchanged, the price fluctuations drop.

Generally, the crypto market is unstable. As such, several crypto projects, including Bitcoin, set new all-time highs in March 2024.The Crypto Volatility Index (CVI), which tracks the thirty-day future volatility, rose to 85 points on March 11.

Additionally, the CVI recorded an all-time high value two days before Bitcoin set a new all-time high, breaking above $73,000 on March 13.

By monitoring to movement of the CVI, traders can gain from Bitfinex's new products, given that the tools have already shown the waves of volatility in the crypto market recently.

Crypto Derivatives Expansion Continues as Deribit Moves Operations to Dubai

Meanwhile, another major derivatives company, Deribit, is relocating its headquarters to Dubai after getting local regulatory approval.Deribit is one of the largest exchanges in the world that offers options for cryptocurrencies such as Bitcoin.

This approval can be considered a major victory that could pave the way for other crypto exchanges to begin operations in the region.

According to the announcement on April 2, Deribit has received a virtual asset provider (VASP) license from Dubai's Virtual Asser Regulatory Authority (VARA).

This license enables Deribit to offer crypto services in Dubai for spot and derivatives trading of futures and options. However, this license remains non-operational until the Deribit satisfies all conditions and requirements to operate fully.

Consequently, Deribit will relocate its global headquarters from Panama to Dubai, drawing investor attention in the region.Deribit ranks as the fifth-largest derivatives exchange daily behind Binance, Bybit, OKX, and Bitget, trading $1.9 billion.

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