First Bitcoin Futures Contract Debuts in Argentina

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Argentina welcomed its first Bitcoin (BTC) futures contract on July 13, just three months after the country’s securities watchdog approved the underlying index as part of a trading program. strategic innovation.

According to Matba Rofex, the trading platform behind the investment vehicle, this is the first Bitcoin futures contract in Latin America. In a futures contract, buyers bet on the future price of a commodity or other asset, such as Bitcoin. Under the contract, buyers and sellers are required to buy and sell the asset at a predetermined future date.

Argentina’s securities regulator, the Comisin Nacional de Valores (CNV), approved the Bitcoin futures index in April as part of an innovative program to encourage public-private collaboration for new financial products.

The Bitcoin futures contract will be based on the price of BTC quoted by several market participants providing BTC/ARS trading pairs. All transactions will be settled in Argentine pesos and traders are required to make deposits by bank transfer.

According to local media, the product will initially only be available to institutional investors. There is no clear timeline for when retail investors can trade Bitcoin futures in the country. With the futures index, qualified investors can gain exposure to BTC in a transparent and regulated environment.

Argentinians have turned to Bitcoin to keep pace with hyperinflation in the country. Argentina’s annual inflation rate soared to 114% in May from a jump of 108% in April 2023, reaching the highest level since 1991, according to Trading Economics.

Annual inflation rate in Argentina. Source: Trade Economics.

Another Bitcoin futures contract is expected to become available in the region soon, as Brazilian regulators are evaluating a similar investment vehicle backed by local B3 exchange. Originally scheduled for June 30, the crypto futures contract is now expected to go live on September 30. This is the second time the product release has been delayed.

Bitcoin futures premia hit their highest level in 18 months on July 4, jumping 3.2% from the previous week. With the rise in demand for BTC derivatives, traders are wondering if the market is experiencing “excessive excitement” or returning to normal after a prolonged bear market, Cointelegraph reported.

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