Bitfinex launches volatility futures on Bitcoin and Ether

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Bitfinex’s derivatives platform launched trading of two new perpetual futures contracts tracking Volmex’s Bitcoin Implied Volatility Index and Ethereum Implied Volatility Index.

Cryptocurrency exchange Bitfinex is expanding trading tools in response to a volatility spike in crypto markets by introducing new Bitcoin and Ethereum Implied Volatility Index . The indexes track 30-day expected volatility or the implied volatility of BTC and ETH options contracts.

“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.” 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.

 

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