Argentina Introduces First Bitcoin Futures Contract, Accelerating Innovation Agenda
Argentina has successfully launched its inaugural Bitcoin futures contract on July 13, marking a significant milestone just three months after the country’s securities watchdog approved the underlying index as part of its strategic innovation agenda.
The trading platform Matba Rofex, responsible for the investment vehicle, has introduced the first Bitcoin futures contract in Latin America. In a futures contract, buyers speculate on the future price of a commodity or asset, such as Bitcoin. Participants in the contract are obliged to purchase or sell the asset at a predetermined date in the future.
The Comisión Nacional de Valores, Argentina’s securities regulator, granted approval for the Bitcoin futures index in April as part of its initiative to foster collaboration between the public and private sectors in developing new financial products.
The Bitcoin futures contract will be based on the BTC price quoted by multiple market participants offering BTC/ARS trading pairs. All trades will be settled in Argentine pesos, with traders required to make deposits through bank transfers.
Initially, the product will be available exclusively to institutional investors, while there is no specified timeline for retail investors to access Bitcoin futures contracts in the country. With the futures index, qualified investors can gain exposure to BTC in a transparent and regulated environment.
Given the hyperinflation challenges faced by Argentina, many citizens have turned to Bitcoin as a hedge against the devaluation of the local currency. In May, Argentina experienced an annual inflation rate of 114%, the highest level since 1991, as reported by Trading Economics.
Brazil is also expected to introduce a Bitcoin futures contract soon, as regulators evaluate a similar investment vehicle backed by the local stock exchange B3. Originally scheduled for launch on June 30, the crypto futures contract has been delayed and is now anticipated to go live on September 30.
Bitcoin futures premiums reached their highest point in 18 months on July 4, increasing by 3.2% from the previous week. This surge in demand for BTC derivatives has led traders to question whether the market is witnessing excessive excitement or returning to normalcy after an extended bear market, as reported by Cointelegraph.