Argentina Set to Debut First Bitcoin Futures Contract

Crypto Futures Contract Approved in Argentina

Argentina has taken a step forward in the crypto space with the launch of its first Bitcoin (BTC) futures contract on July 13. This comes only three months after the country’s securities watchdog, the Comisión Nacional de Valores (CNV), approved the underlying index as part of its strategic innovation agenda.

The trading platform Matba Rofex is responsible for the investment vehicle, making it the first Bitcoin futures contract in Latin America. In a futures contract, buyers make a bet on the future price of an asset, such as Bitcoin, and are obligated to purchase or sell the asset at a predetermined future date.

The CNV’s approval of the Bitcoin futures index in April was part of a larger effort to encourage public-private collaboration for new financial products. The contract is based on the price of BTC quoted by several market participants providing BTC/ARS trading pairs, and all trades will be settled with Argentine pesos.

Traders are required to make deposits through bank transfers in order to take part in the crypto futures contract.

Crypto Futures Contracts in Argentina and Brazil

Institutional investors in Argentina are now able to gain Bitcoin (BTC) exposure through a regulated futures index. However, retail investors have yet to receive a timeline for when they can trade Bitcoin futures contracts in the country. This comes as Argentinians turn to Bitcoin to keep up with the hyperinflation in the country, which saw its annual inflation rate soar 114% in May from a 108% jump in April 2023.

The Brazilian stock exchange B3 is also evaluating a crypto futures contract, which is now expected to go live on September 30. This marks the second delay of the product release. Meanwhile, Bitcoin futures premiums have reached its highest level in 18 months on July 4, jumping 3.2% from the previous week.

Crypto traders are questioning whether the market is experiencing “excessive excitement” or is returning to normal after a prolonged bear market, as demand for BTC derivatives continues to surge. Celcius Crypto, Crypto App, and Bond Crypto are just a few of the features integrated into Web 3.0 that are making it easier for investors to gain exposure to Bitcoin.