Bitfinex Launches First Bitcoin and Ethereum Futures Contract

BiFinex Financial Technologies Limited’s derivatives platform Bitfinex Derivatives has expanded its offering with the launch of two new futures contracts. These contracts, the Bitcoin Implied Volatility Index (BVIVF0:USTF0) and the Ethereum Implied Volatility Index (EVIVF0:USTF0), aim to capture the market’s perception of future prices for two major commodities.

Unlike futures contracts that track the price of the underlying asset, these new contracts focus on the volatility of the underlying indicators derived from option pricing. The volatility index shows the market’s expectation of how the price of an asset will change over time. Simply put, BVIV and EVIV contracts allow traders to predict whether market participants will expect a large price change (high volatility) or a small volatility (low volatility) for Bitcoin and Ether in the coming weeks.

Bitcoin Ethereum Volatility Futures Contract offers up to 20x

Contracts uses the Volmex Implied Volatility index, which tracks the 30-day expected volatility of the index. This allows investors to determine market sentiment without buying or selling Bitcoin or Ether.

Additionally, Bitfinex Derivatives offers these contracts with up to 20x risk and can increase profits (or losses) for experienced traders accustomed to these risks.

These new volatility indicators offer traders a new way to determine market sentiment and potential profit from expected Bitcoin and Ether price increases, as shown in a press release published by Beimnet.

It is known that volatility rates are negatively related to the prices of underlying assets. This means that when there is a significant drop in the price of Bitcoin or Ether, the volatility index usually rises, reflecting the anxiety of the market. Conversely, periods of price stagnation are often accompanied by lower figures. Volatility rates can also be quite sensitive when unexpected events impact the market.