The first Bitcoin futures contract was launched in Argentina on July 13, marking a significant step for the adoption of the world’s largest cryptocurrency in the country. Interestingly, the news comes just three months after the securities regulator of the country approved a Bitcoin-based futures index set to debut on the Matba Rofex exchange
As per the official confirmation from Matba Rofex, which is the Argentina-based trading platform behind the Bitcoin futures contract, this is also the first futures contract based on the leading crypto asset in the Latin American region. It is crucial to note that in a futures contract, the buyers and sellers take a guess at the future price of a digital asset or commodity like Bitcoin
After placing the bet, the buyers and sellers are obligated to sell their assets at the predetermined fixed date in the future. Additionally, the Comisión Nacional de Valores, the agency responsible for financial regulation of securities products in Argentina, approved the Bitcoin futures index in April
The approval was a step towards encouraging collaboration between the public and private sectors to create new financial products. Moreover, the Bitcoin futures contract will be based on the price of the world’s largest digital asset as stated by market participants in Argentina providing BTC/ARS trading pairs
Interestingly, all the transactions will be carried out in Argentine pesos, and the people involved in the Bitcoin futures contract trading activities will have to deposit money via centralized financial institutions like banks
As per the report from a local media outlet, the product will initially be available only to institutional investors, and no clear timeline has been given for when retail investors can trade Bitcoin futures contracts in the country. The futures contract will provide investors in Argentina an indirect exposure to the price of the leading crypto asset in a centralized and regulated environment.
In an earlier report, Bitnation confirmed that several crypto firms have eyed expansion in the entire Latin American region. Crypto trading platform Bitfinex recently expanded its presence in the Latin American crypto industry by launching a peer-to-peer marketplace in Argentina, Colombia, and Venezuela.
