Bitfinex is introducing new Bitcoin and Ether volatility futures in response to increased market volatility within the crypto space. These futures contracts are based on the Volmex Implied Volatility indices, tracking the expected volatility of options contracts for BTC and ETH over a 30-day period.

The creation of these indices allows users to trade the implied volatility of Bitcoin and Ether in a perpetual format. Perpetual futures, also known as perpetual swaps, are derivative contracts without an expiration date, providing traders with a flexible trading format, according to Bitfinex's head of derivatives, Jag Kooner.

Bitfinex currently offers over 60 perpetual futures contracts, including cryptocurrencies, commodities, FX, and equities. These new contracts add implied volatility as another asset class, catering to both retail and institutional investors in the crypto space.

The introduction of these new trading tools is a response to the heightened volatility experienced in cryptocurrency markets as digital assets reach new all-time highs. The Crypto Volatility Index (CVI) peaked at 85 points in March 2024, reflecting the increased market fear due to substantial price movements in crypto assets.