Brazil is tapping into the worldwide interest in Bitcoin by introducing Bitcoin futures trading, seizing the chance to leverage the cryptocurrency’s popularity. As reported by Reuters, B3, the Brazilian exchange operator, disclosed on Thursday that it has secured approval from Brazil’s securities regulator to launch Bitcoin futures trading, slated to commence on April 17th.
Bitcoin futures contracts are now tethered to the Nasdaq reference price.
B3, the Brazilian exchange operator, has revealed that while the official launch date for Bitcoin futures trading may undergo adjustments, it has confirmed some significant details regarding the upcoming offering. Among these details is the decision to tie the futures contracts to the Nasdaq Bitcoin reference price, a move that underscores B3’s commitment to aligning with globally recognized benchmarks in the cryptocurrency market.
Moreover, each futures contract will represent 10% of the Bitcoin price denominated in Brazilian reais, providing traders with a standardized and easily understandable unit for their transactions. This approach not only simplifies the trading process but also ensures consistency and transparency, crucial factors in fostering trust and confidence among market participants.
By linking the futures contracts to the Nasdaq reference price, B3 aims to provide traders with a reliable and reputable basis for pricing and valuation. This move reflects the exchange’s strategic vision to position itself as a key player in the burgeoning cryptocurrency derivatives market, catering to the evolving needs of investors and traders seeking exposure to digital assets.
While the precise launch date remains subject to potential adjustments, B3’s announcement signals a significant milestone in Brazil’s efforts to capitalize on the growing demand for Bitcoin-related products. As the cryptocurrency market continues to mature and gain mainstream acceptance, initiatives like these play a vital role in expanding access and liquidity, ultimately contributing to the broader adoption of digital assets on a global scale.
Felipe Goncalves, who serves as B3’s superintendent overseeing swap rates and currency products, underscored the importance of this pivotal moment, expressing:
The launch meets the demand for a derivative that allows a hedge against Bitcoin’s price fluctuations or a directional exposure to the asset.
It’s crucial to highlight that the Bitcoin futures contract provided by B3 will be settled financially, implying that there won’t be any physical buying or selling of BTC involved. This methodology conforms to the structure of regulated derivatives markets, enabling investors to participate in Bitcoin’s price fluctuations without the need for direct possession of the cryptocurrency.
Brazil Embraces BlackRock’s iShares Bitcoin Trust ETF
This recent development aligns with the launch of the iShares Bitcoin Trust ETF (IBIT39) in Brazil by BlackRock, one of the world’s largest asset managers and a notable issuer of Bitcoin Exchange-Traded Funds (ETFs). The announcement of IBIT39’s launch came in early March, adding to the growing presence of crypto investment options in Brazil.
Felipe Gonçalves, B3’s superintendent of swap rates and currency products, underscored the burgeoning crypto market in Brazil. He pointed out that the country already hosts 13 ETFs, collectively valued at R$2.5 billion (roughly $505 million). Moreover, the market has attracted a significant number of institutional investors, including both funds and individual investors, totaling approximately 170,000.
The iShares Bitcoin Trust ETF (IBIT39) is anticipated to have a management fee of 0.25%, with a provision for a one-year fee waiver, lowering it to 0.12% once the fund’s assets under management surpass $5 billion. With B3’s regulatory green light for Bitcoin futures trading and the introduction of the iShares Bitcoin Trust ETF, Brazil is reinforcing its position as a key player in the ever-expanding global Bitcoin and cryptocurrency market.
These developments offer investors fresh avenues to engage with the digital asset landscape while contributing to the growth and maturation of Brazil’s crypto investment environment.
The 1-D chart shows BTC’s price consolidating above the $70,000 mark. Source: BTCUSD on TradingView.com
The leading cryptocurrency, currently valued at $70,400, has rebounded from the $60,800 mark after a notable correction. BTC has managed to maintain its position above this critical level for the past 24 hours, signaling a robust momentum that could potentially surpass its previous all-time high of $73,700, achieved on March 14.
When assessing BTC’s performance across longer time frames, significant gains become apparent. In just the past week, there has been an impressive 11% increase in value. Over the course of the past month, BTC has experienced a notable surge of 16%.
Moreover, its year-to-date growth stands at nearly 150%, underscoring the sustained bullish trend that has characterized the cryptocurrency’s trajectory since the conclusion of the bear market and the subsequent recovery from the crypto winter of 2022.
