The Brazilian Stock Exchange to Introduce Bitcoin Futures

Key Takeaways

  • André Milanez revealed in a conference call on Monday that the Brazilian Stock Exchange, B3, will introduce its first official crypto-related product within the next six months. “In the next three to six months, we plan to offer bitcoin futures,” he stated.
  • No information was provided on whether B3 had product collaborations in place or if another firm would be providing infrastructure.
  • During the January interview, Mielke stated that B3 had been investigating bitcoin and other cryptocurrencies since 2016, but that the question of valuing the assets against the dollar or the Brazilian real was a stumbling block in their decision.

B3, the Brazilian Stock Exchange, has stated that it will introduce its first official Bitcoin trading product, the Bitcoin futures market, in an absolute max of six months. During a conference call to discuss the statistics of the first quarter of 2022, the group’s chief financial officer, André Milanez, revealed the information.

On a conference call, CFO André Milanez mentions the fact, “We expect to launch bitcoin futures in the next three to six months.”

The Brazilian Stock Exchange To Introduce Bitcoin Futures

No information was provided on whether B3 had product collaborations in place or if another firm would be coordinating.

B3’s CFO disclosed plans to trade futures based on bitcoin and other cryptocurrencies in January.

In December, B3 President Gilson Finkelsztain said, “It is logical for us to expand into the unregulated realm of cryptocurrencies,” adding that the company wanted to offer crypto services to traders rather than be a crypto exchange.

Cryptocurrency futures are contracts on the future price of a cryptocurrency between two investors. They enable investors to obtain exposure to a variety of cryptocurrencies without having to buy them. Because they allow you to wager on the price trajectory of an underlying asset, crypto futures are similar to regular futures contracts for commodities or stocks.

During the January interview, Mielke stated that B3 had been investigating bitcoin and other cryptocurrencies from 2016, but that the question of evaluating the assets against either the dollar or the Brazilian real had complicated their decision.

“We’re identifying places of friction that we can help solve to address it,” he added. “For example, we’re assisting our clients in providing the best access to their end customers.”

B3 plans to offer services to national cryptocurrency exchanges and act as a “centralizer” of custody and settlement activities, in addition to BTC and ETH futures, according to Jochen Mielke de Lima:

“Apart from the multinational crypto brokers that operate here, we have roughly 30 native crypto brokers.” We may provide a service to help them streamline and standardise their processes. In the January conversation, Mielke told Valor, “I feel you have something to investigate in providing custody services and the settlement process.”

The primary benefit of trading Bitcoin futures contracts is that they provide regulated cryptocurrency exposure. That is a major point in a dynamic ecology with huge price swings. The Commodities Futures Trading Commission regulates bitcoin futures contracts at CME (CFTC). This gives institutional investors, who constitute the majority of traders in such contracts, a sense of security and recourse.

B3’s official Twitter account @B3 Oficial uploaded a post on May 17th detailing how to invest in crypto with all the security of a stock exchange in three simple steps.

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Aadrika Sharma

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