Bitcoin VIX perpetual contracts launched on Hyperliquid, supporting direct long or short volatility

According to CoinDesk, the Bitcoin Volatility Index BVIV's perpetual contract was launched on Hyperliquid on Monday, allowing traders to bet on the magnitude of Bitcoin price fluctuations rather than the direction directly on the on-chain exchange. The BVIV index is often referred to as the "Bitcoin VIX," which tracks the expected implied volatility of the cryptocurrency over the next 30 days in real-time, similar to the Chicago Board Options Exchange VIX index that tracks the implied volatility of the S&P 500 index.

The newly launched perpetual market allows traders to directly go long or short on the volatility index without needing to express their volatility views indirectly through costly options tools that require derivative expertise. The perpetual contract uses USDC as collateral and pricing asset, initially supporting up to 5x leverage. The Seda oracle infrastructure is responsible for connecting the Volmex index to the Markets exchange on-chain.

Cole Kennelly, founder and CEO of Volmex Labs, stated that the launch of the BVIV index perpetual contract on Hyperliquid provides crypto traders with a convenient tool for volatility hedging and speculation. This launch is led by the on-chain perpetual contract platform Markets by Kinetiq based on Hyperliquid, in collaboration with Volmex and Perps.inc, marking the first joint deployment of the three parties and the first time the Volmex Bitcoin Volatility Index has gained access to an on-chain perpetual contract market. Hyperliquid is the world's largest decentralized perpetual contract exchange, with an average daily trading volume of several billion dollars and a fully diluted valuation of over $90 billion.