Summary:
• Bitcoin futures trading on B3 will begin next month on April 17.
• B3 already offers its clients access to BlackRock’s IBIT Bitcoin ETF.
• Bitcoin futures on B3 will be pegged to the Nasdaq Bitcoin Reference Price.
Brazilian stock exchange B3 announced that Bitcoin futures will be linked to the Nasdaq Bitcoin reference price, with the value of each contract equivalent to 10% of the total value of Bitcoin in Brazilian reals.
On Thursday, March 28, Brazil’s popular stock exchange B3 announced that the country’s securities regulator has approved them to offer Bitcoin futures to customers. Trading will reportedly begin on April 17.
More details about Bitcoin futures contracts
Brazilian crypto exchange B3, which currently offers crypto-asset exchange-traded funds (ETFs) and related receipts, said the official launch date is still subject to change. The exchange also added that the Bitcoin futures contracts will be financially settled without the actual purchase and sale of Bitcoin spot.
The company emphasized in an official statement that Bitcoin futures will be linked to the Nasdaq Bitcoin Reference Price, with the value of each Bitcoin futures contract equivalent to 10% of the total value of Bitcoin in Brazilian reals. %. Felipe Goncalves, B3’s head of swap rates and currency products, told Reuters:
“This launch meets market demand for derivatives that allow people to hedge against bitcoin price volatility or gain directional exposure to the asset.”
Brazil and its cryptocurrency adoption
The Latin American country Brazil has been steadfast in its moves in the cryptocurrency space. Given the strong adoption in the country, regulators have also been taking steps to create an enabling environment while ensuring the safety of investors.
BlackRock also decided last month to launch its Bitcoin ETF IBIT in the Brazilian market due to strong demand for Bitcoin in Brazil. BlackRock intends to achieve this in partnership with the country’s stock exchange operator B3, which would mark the asset manager’s first crypto ETF launch in the South American country.
However, starting in 2024, Brazil will also tax investors’ holdings of overseas crypto assets. Relevant laws stipulate that profits from cryptocurrencies held overseas will be taxed at rates of up to 15%. In addition, the law sets a threshold under which foreign earnings of less than $1,200 will be exempt from taxation.
In a notable move in Brazil’s financial sector, the country’s largest banking institution, Itau Unibanco, has strategically entered the cryptocurrency market. The bank has launched a cryptocurrency trading service tailored for its investment platform clients.
