Fun

Bitfinex launches volatility futures on Bitcoin and Ether

News Feed - 2024-04-03 05:04:00

Helen Partz1 hour agoBitfinex launches volatility futures on Bitcoin and EtherBitfinex Derivatives is allowing investors to trade on the implied volatility of Bitcoin and Ether as another asset class.276 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCryptocurrency exchange Bitfinex is expanding trading tools in response to a volatility spike in crypto markets by introducing new Bitcoin (BTC) and Ether (ETH) volatility futures.


Bitfinex’s derivatives platform Bitfinex Derivatives, provided by iFinex Financial, launched trading of two new perpetual futures contracts, the firm announced to Cointelegraph on April 3.


The new contracts are based on the Volmex Implied Volatility indexes, the Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV). The indexes track 30-day expected volatility or the implied volatility of BTC and ETH options contracts.The Bitcoin Implied Volatility Index all-time chart. Source: TradingView


“The creation of these indices allows our customers to not only monitor but actually trade the implied volatility of Bitcoin and Ether in a simple perpetual format,” Bitfinex’s head of derivatives, Jag Kooner, told Cointelegraph.


Perpetual futures, also known as perpetual swaps or perpetuals, are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration date.


According to Kooner, perpetual futures make the “most tradable format in the crypto space,” as other contracts rely on a dated structure. He noted:“Tracking the 30-day implied volatility in Bitcoin and Ether options contracts without the need to roll — i.e. dated futures — opens up the product to both retail and institutional investors alike.”


The new contracts join over 60 perpetual futures contracts available on Bitfinex, including not only cryptocurrencies but commodities like precious metals and oil, FX and equities. “These new contracts will allow us to add implied volatility as another asset class,” Kooner stated.


Related:Crypto derivatives firm Deribit moves to Dubai after winning VARA approval


In options trading, implied volatility is a metric indicating how much the market expects the value of an asset to change over a certain period of time.


If investors expect a lot of movement, the volatility rises, but if the expectation is that an asset’s price movement will be muted, then volatility contracts.


Kooner mentioned the new trading tools are introduced in response to cryptocurrencies hitting new all-time-high prices. He noted:“With many crypto prices reaching new ATHs, the likelihood of increased volatility and significant drawdowns means there is more utility for these indexes than ever.”


The news comes after cryptocurrency volatility broke all-time highs in March 2024. The Crypto Volatility Index (CVI), which tracks 30-day future volatility and serves as a “market fear index” to the crypto market, topped at 85 points on March 11.The Crypto Volatility Index all-time chart. Source. CVI Finance


The CVI’s all-time high came just two days before Bitcoin reached its historic highs above $73,000 on March 13. At the time of writing, the implied crypto volatility measured by CVI values around 76.


Magazine:NFTs are like nightclubs, crypto is a volatile religion: NFTStats, NFT Collector# Bitcoin# Adoption# Bitfinex# Volatility# Futures# TradingAdd reactionRead moreAave launches proposal to counter MakerDAO DAI expansion riskBitcoin traders ignore Silk Road sale as BTC price bounces to $66.5KBitfarms announces $240M mining upgrade to triple post-halving hash rate

News Feed

Biggest Movers: RUNE Rises by Over 20% Today, as NEAR Climbs to Resistance
Biggest Movers: RUNE Rises by Over 20% Today, as NEAR Climbs to Resistance NEAR rose to its highest level since last Thursday, as prices rebounded from recent lows. SAND and RUNE a
Brayden Lindrea2 hours agoElon Musk says posts busted by Community Notes won’t earn revenue shareElon Musk assured those attempting to “weaponize” the Community Notes feature would be immediately found out.982 Tota
SLP Token Market Cap Surpasses $50 Million
SLP Token Market Cap Surpasses $50 Million For over a year now, the Simple Ledger Protocol (SLP) token universe has grown quite vast. There are now more than 6,000 SLP tokens in
Are market makers manipulating 78% of new crypto listings?
Wesley Pryor7 hours agoAre market makers manipulating 78% of new crypto listings?One formula indicates that up to 78% of new token listings since April 2024 have been conducted badly. Why do market makers seem to be indi
This Analyst Correctly Predicted The Bitcoin Price Jump To $99,000, But His Prediction Is Not Done
Este artículo también está disponible en español. A crypto analyst who accurately forecasted the Bitcoin price increase to the $99,000 All-Time High (ATH) has just releas
Memecoin casino: $100 bet on Pump.fun has worse odds than roulette
Robert D. Knight10 hours agoMemecoin casino: $100 bet on Pump.fun has worse odds than rouletteTraders are disillusioned with the ultra slim chances of picking a memecoin winner.1060 Total views11 Total sharesListen to ar
Derek Andersen4 hours agoMIT Digital Currency Initiative introduces at-scale, programmable CBDC platformPArSEC — short for “parallelized architecture for scalably executing smart contracts” — runs on the ERC-20
Winner Cashes Out $160,000 from Bitcoin.com Games with a 13,870x Multiplier
Winner Cashes Out $160,000 from Bitcoin.com Games with a 13,870x Multiplier Bitcoin.com Games gave this player 160,000 reasons to be happy this spring! Lucky Pla
Bitcoiner Loses Password to 7,002 Bitcoins Worth $240 Million
Bitcoiner Loses Password to 7,002 Bitcoins Worth $240 Million A bitcoiner has shared his story of how he lost access to his 7,002 bitcoins, worth about $240 mill
Helen Partz13 hours agoArbitrum DAO takes $56M of unclaimed ARB as airdrop deadline endsThe amount of unclaimed Arbitrum tokens accounts for 0.69% of ARB’s total supply of 10 billion.3724 Total views9 Total sharesListe
Ross Ulbricht Genesis Collection NFT Auction Sees Millions of Dollars in Ethereum Bids
Ross Ulbricht Genesis Collection NFT Auction Sees Millions of Dollars in Ethereum Bids Two days ago on December 2, the Ross Ulbricht Genesis Collection auction of non-fungible toke
Savannah Fortis10 hours agoUS senators to have classified AI briefing at the White HouseU.S. senators will take part in the country’s first-ever classified Senate briefing on AI, which will place in conjunction with th