2024-03-29 06:14:19 ET
Brazil’s popular stock exchange, B3, has announced the receipt of approval to provide Bitcoin futures starting April 17. B3 said that the Bitcoin futures will be tied to the Nasdaq Bitcoin Reference price. Each futures contract will be set at 10% of the BTC price and will expire monthly. B3 added:
At its launch, the Bitcoin futures contract will initially feature market makers, agents who negotiate the product and help bring liquidity and reliability to price formation.
B3 says the futures contract will have a financial settlement, and there will be no buying or selling of the actual cryptocurrency. The stock exchange, however, says the official date of the Bitcoin futures launch is subject to change.
Launch meets demand among Brazilian investors
B3, which already offers exchange-traded funds (ETFs) and receipts of ETFs related to cryptoassets says “the launch meets the demand for a derivative that allows a hedge against Bitcoin’s price fluctuations or a directional exposure to the asset.”
The futures launch comes when Brazil witnesses increased crypto uptake, with regulators embarking on measures to create a safe environment for investors. Last year, authorities passed a law that would see investors taxed at 15% on their crypto holdings in 2024.
Institutional crypto uptake has also been growing, with Brazil’s largest banker, Itau Unibanco, introducing a cryptocurrency trading service for its clients.
Brazil’s crypto pursuits also come when other countries embrace the digital asset, with approvals of various crypto-linked products. Earlier this week, the London Stock Exchange announced it will launch cryptocurrency exchange-traded notes (ETNs) that track the price of Bitcoin and Ether in May. This comes after the approvals of the first spot Bitcoin ETFs in the US earlier this year.
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