Brazil’s B3 Exchange Receives Regulatory Approval to Launch Bitcoin Futures in April
Brazilian exchange operator B3 has received approval from the country’s securities regulator to introduce Bitcoin futures trading.
On Thursday, the platform said the Bitcoin futures trading is scheduled to commence on April 17, according to a report from Reuters .
Currently, B3 offers exchange-traded funds (ETFs) and ETF receipts related to cryptoassets.
With the addition of Bitcoin futures, the exchange aims to meet the growing demand for derivatives that provide a hedge against price fluctuations or directional exposure to the popular cryptocurrency.
The Bitcoin futures contracts offered by B3 will be tied to the Nasdaq Bitcoin Reference Price, with each contract representing 10% of Bitcoin’s price in Brazilian reais.
It is important to note that these futures contracts will involve financial settlement, meaning there will be no actual buying or selling of physical bitcoin.
“The launch meets the demand for a derivative that allows a hedge against bitcoin’s price fluctuations or a directional exposure to the asset,” Felipe Goncalves, B3’s superintendent of swap rates and currency products, said.
He said that the move by B3 signifies a significant step in the integration of cryptocurrencies into the traditional financial market of Brazil.
By offering Bitcoin futures, B3 provides investors with a regulated and secure platform to participate in Bitcoin trading, leveraging the price movements of the digital asset.
Brazil has been moving toward digital assets and innovative technologies like blockchain.
Last year, the country announced it is set to issue digital identification documents for its more than 214 million citizens using blockchain technology.
The decision to leverage blockchain technology for
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