Bitfinex is responding to increased volatility in crypto markets by expanding its trading tools, introducing new Bitcoin (BTC) and Ether (ETH) volatility futures.

These new perpetual futures contracts, offered through Bitfinex Derivatives by iFinex Financial, are based on the Volmex Implied Volatility indexes, specifically the Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV).

These indexes track the 30-day expected volatility or implied volatility of BTC and ETH options contracts. According to Bitfinex's head of derivatives, Jag Kooner, these indices allow customers to monitor and trade the implied volatility of Bitcoin and Ether in a perpetual format, without the need for expiration dates.

Perpetual futures, also known as perpetual swaps, offer a tradable format without the limitations of dated structures, making them popular among both retail and institutional investors. These new contracts join Bitfinex's existing offering of over 60 perpetual futures contracts, covering cryptocurrencies, commodities, FX, and equities.

Kooner highlighted that the introduction of implied volatility as another asset class responds to the market's increased volatility amid new all-time-high prices in cryptocurrencies.

This move comes after cryptocurrency volatility hit all-time highs in March 2024, with the Crypto Volatility Index (CVI) reaching 85 points on March 11, just days before Bitcoin's historic highs above $73,000 on March 13. As of the latest data, the implied crypto volatility measured by CVI stands around 76.