Bitfinex, the Seychelles-based cryptocurrency exchange, has announced the expansion of its product offerings to include volatility futures for Bitcoin (BTC) and Ethereum (ETH), providing users with the opportunity to speculate on the expected price performance of these leading digital assets.

The new perpetual contracts, introduced on April 3, 2024, are now available on Bitfinex's derivatives platform, Bitfinex Derivatives, facilitated by its parent company Ifinex Financial, which also owns Tether Holdings.

These new products, the Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV), are based on the Volmex Implied Volatility indexes, derived from real-time options for BTC and ETH. They indicate the expected price turbulence over a 30-day period, providing traders with valuable insights into market sentiment.

Jag Kooner, the head of derivatives at Bitfinex, highlighted the user-friendly nature of these products, offering customers a "simple format" to trade perpetual contracts. By tracking the 30-day implied volatility in Bitcoin and Ether options contracts without the need for fixed expiration dates, these contracts cater to both retail and institutional investors.

The launch of BTC and ETH volatility futures marks Bitfinex's addition of another asset class to its diverse portfolio of over 60 perpetual futures contracts, which include cryptocurrencies, commodities, FX, and equities. Denominated, margined, and settled in Tether's stablecoin USDT, these futures contracts offer traders a convenient and accessible way to hedge against or capitalize on market volatility.

Starting from April 3, 2024, traders can access these futures contracts under the ticker symbols BVIVF0:USTFO for Bitcoin and EVIVFO:USDTFO for Ethereum. The introduction of these volatility futures follows a broader trend in the cryptocurrency derivatives market, with platforms like Deribit introducing similar products linked to their respective volatility indexes.

Bitfinex's move to offer volatility futures for Bitcoin and Ethereum reflects the growing demand for sophisticated trading instruments in the cryptocurrency space. As the market matures, exchanges are increasingly diversifying their offerings to cater to the evolving needs of traders and investors alike.