In response to the global demand for Bitcoin-related products, Brazil has seized the opportunity to capitalize on the momentum surrounding the leading cryptocurrency. 

According to a Reuters report, Brazilian exchange operator B3 announced on Thursday that it has received approval from Brazil’s securities regulator to offer Bitcoin futures trading, which is expected to begin on April 17.

BTC Futures Linked To Nasdaq Reference Price

B3 announced that the official launch date of futures trading for BTC may be subject to change. Nevertheless, the exchange confirmed that future contracts will be linked to the Nasdaq Bitcoin reference price, with each contract representing 10% of the BTC price in Brazilian reais.

Felipe Goncalves, B3’s superintendent of swap rates and currency products, emphasized the significance of this milestone, stating: 

The launch meets the demand for a derivative that allows a hedge against Bitcoin’s price fluctuations or a directional exposure to the asset. 

It is important to note that the Bitcoin futures contract offered by B3 will be settled financially, meaning that no actual buying or selling of BTC will occur. 

This approach aligns with the landscape of regulated derivatives markets, allowing investors to engage with Bitcoin’s price movements without requiring direct ownership of the cryptocurrency.

Brazil Welcomes BlackRock’s iShares Bitcoin Trust ETF

This development coincides with one of the world’s largest asset managers, BlackRock, and a prominent Bitcoin Exchange-Traded Fund (ETF) issuer announcing the iShares Bitcoin Trust ETF (IBIT39) launch in Brazil in early March. 

Felipe Gonçalves highlighted the growth of the crypto market in Brazil, citing the existence of 13 ETFs with a total asset value of R$2.5 billion (approximately $505 million). Notably, the market has attracted institutional investors, including funds and individual investors, with a current count of 170,000. 

The iShares Bitcoin Trust ETF (IBIT39) is expected to have a management fee of 0.25%, with a one-year waiver that reduces the fee to 0.12% once the fund surpasses $5 billion in assets under management. 

With B3’s regulatory approval for Bitcoin futures trading and the iShares Bitcoin Trust ETF launch, Brazil is solidifying its position as a significant player in the expanding global Bitcoin and cryptocurrency market. 

These developments provide investors with new avenues to participate in the digital asset ecosystem while fostering the growth and maturation of Brazil’s crypto investment landscape.

The largest cryptocurrency in the market trades at $70,400, demonstrating a rebound from the $60,800 level following a significant correction. BTC has successfully consolidated above this crucial level over the past 24 hours, indicating a strong momentum to surpass its previous all-time high of $73,700, achieved on March 14.

Examining the cryptocurrency’s performance over longer time frames, we see that BTC has exhibited substantial gains. In the past week alone, an impressive increase of 11% was recorded. BTC has experienced a notable surge of 16% in the past month. 

Furthermore, its year-to-date growth is nearly 150%, highlighting the sustained bullish trend that has prevailed since the end of the bear market and the subsequent recovery from the 2022 crypto winter.

Featured image from Shutterstock, chart from TradingView.com