Argentina Launches BTC Futures

Three months after the securities watchdog approved the index as part of a strategic innovation goal, Argentina issued its first Bitcoin futures contract on July 13.

It’s Latin America’s first Bitcoin futures contract, according to trading platform Matba Rofex. Buyers wager on Bitcoin’s future price via a futures contract.

Buyers and sellers must buy and sell the asset at a future date under the contract. In April, Argentina’s securities regulator, the Comisión Nacional de Valores, approved the Bitcoin futures index as part of a new public-private financial product initiative.

Several market participants offering BTC/ARS trading pairs will set the Bitcoin futures contract price. Bank transfers are required to deposit Argentine pesos for all trades.

Institutional investors will get the goods first, local media say. Retail investors cannot trade Bitcoin futures contracts yet. The futures index gives qualified investors BTC exposure in a transparent, regulated environment.

Bitcoin helps Argentinians cope with hyperinflation. Trading Economics said that Argentina’s annual inflation rate rose 114% in May from 108% in April 2023, the highest level since 1991.

Argentina annual inflation rate. Source: Trading Economics

Brazil’s regulators are studying a B3-backed Bitcoin futures contract, which might be available soon. Crypto futures contracts will launch on Sept. 30 instead of June 30.

The product release is delayed again. On July 4, bitcoin futures premiums rose 3.2% from the week before. Traders wonder if BTC derivatives demand is “excessive excitement” or a return to normal after a long bear market.