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Bitfinex Introduces New Bitcoin and Ethereum Volatility Futures

Bitfinex Introduces New Bitcoin and Ethereum Volatility Futures

Key Takeaways

  • Bitfinex has introduced perpetual futures tracking price changes in Bitcoin and Ethereum;
  • These futures simplify participation in market fluctuations for retail investors, avoiding complex trading strategies during volatile events;
  • The futures are based on the BVIV and EVIV indices, similar to the VIX index.

Digital asset exchange Bitfinex has introduced perpetual futures contracts linked to the volatility of Bitcoin (BTC) and Ethereum (ETH).

What sets perpetual futures contracts apart is that trading usually occurs at prices close to an asset's underlying value, and they have an expiration date.

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The volatility futures will help traders handle events that can cause price changes and enable retail investors to benefit from market fluctuations without needing complex strategies.

These futures are introduced based on Volmex's Bitcoin and Ether implied volatility indices, known respectively as BVIV and EVIV. These indices, akin to the traditional financial market's VIX index—often called Wall Street's "fear gauge"—track the expected price volatility over the next 30 days.

Jag Kooner, head of derivatives at Bitfinex, said:

With many crypto prices reaching new all-time highs, the likelihood of increased volatility and significant drawdowns means there is more utility for these indexes than ever.

Bitfinex's announcement on April 3 highlighted the launch of these futures under the ticker symbols BVIVF0:USTFO and EVIVFO:USTFO, with all contracts being denominated, margined, and settled in Tether (USDT), the leading dollar-pegged stablecoin.

The launch also responds to growing interest in crypto volatility as a tradable asset class. It follows in the footsteps of Deribit, a crypto derivatives exchange that introduced Bitcoin volatility trading contracts in March 2023.

By offering 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 crypto derivatives market.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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