A popular Brazilian stock exchange has received approval to offer bitcoin futures. This concerns the fair called B3. From April 17, trading will be possible on their platform.
The bitcoin futures will be linked to the Nasdaq Bitcoin Reference Price. Each futures contract is set at 10% of the price of bitcoin. It expires monthly. B3 writes:
“At launch, the bitcoin futures contract will initially consist of market makers, parties that negotiate the product and help with liquidity and reliability in price formation.”
B3 says that the futures contract will have a financial settlement in fiat money. So no physical bitcoin is bought or sold from the market. The stock exchange also says that the official launch can still be postponed. What remains: B3 has received legal approval.
B3 offers numerous exchange traded funds and is also no stranger to cryptocurrencies. They say that “the launch meets demand for a derivative that allows for a hedge against bitcoin’s price fluctuations or targeted exposure to the asset.”
Think of companies that earn bitcoin (such as miners), but that keep their accounts in fiat money. With a futures contract you can set a price at a specific time in the future. This allows you to hedge volatility risks for the bitcoin that you need to hold or have yet to receive.
Institutional acceptance of cryptocurrencies is growing rapidly in Brazil. The country’s largest bank, Itau Unibanco, recently launched a cryptocurrency trading service.
Last year, authorities passed a law that will see investors face a 15% tax on their crypto holdings in 2024.
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-futures-aanstaande-op-b3-aandelenbeurs-in-brazilie
