Brazilian Stock Exchange To Launch Bitcoin And Ethereum Futures

May 18, 2022 2:19 pm

The Brazilian Stock Exchange just announced that it plans to launch Bitcoin and Ethereum futures within the next 6 months as a sign of the ongoing growth of crypto adoption in the country.

As of right now, the specific details of the launch are still unknown as it is unclear on whether the exchange will form a partnership with a third party entity or if it will be handling the futures directly.

With that being said, it seems that the exchange is confident that the launch will be available very soon for crypto investors.

Once the futures are available, this once again marks another way for investors to gain exposure to the crypto markets through traditional financial markets which means that there will be an influx of new capital.

CoinTelegraph reports:

Currently, in Brazil, institutional and retail investors can trade 11 ETFs through B3 with exposure to cryptocurrencies, including CRPT11 from Empiricus with Vitreo; the NFTS11 of Investo; QBTC11, QETH11 and QDFI11 all from QR Assets and META11, HASH11, BITH11, ETHE11, DEFI11, WEB311 all from Hashdex.

In addition, in Brazil, there are more than 25 investment funds approved by the Securities and Exchange Commission (CVM) that offer different types of exposure to the crypto-assets market.

In January Jochen Mielke de Lima, director of information technology at B3, had already said that the Brazilian stock exchange would launch several products with exposure to cryptocurrencies in 2022, including Bitcoin futures and Ethereum (ETH) futures

At the time, the executive highlighted that the Brazilian stock exchange had been looking closely at the cryptocurrency market from a technological point of view since 2016.

One of the major things that the exchange is working on determining right now is whether these futures will be traded as an USD pair or against the Brazilian real.

Either way, the goal of B3, the name of the Brazilian exchange, is to attempt to solve a lot of the customer pain points that exist today when it comes to crypto.

Given that the market is very similar to the stock market when it comes to things like trading, settlement, and custody, the exchange believes that its exchange services can cover all of this.

B3 also plans to offer much more crypto related products in the future as part of its long term push to provide as much options as possible for investors.

CoinTelegraph concludes:

In addition, B3 plans other products based on cryptocurrencies and blockchain to launch in 2022. Among them, there are studies on a platform for asset tokenization, cryptocurrency trading, cryptocurrency custody, among others.

“Trading and access to liquidity centers: this means mitigating the complexities of accessing a fragmented, global and 24×7 market; Digital Asset Custody: providing reliable custody (hence, purpose of blockchain transactions); Over-the-counter facilitation: thIn this way, it wants to provide more security and efficiency in the movement and DVP of digital assets; Capital efficiency gains: thus, it wants to mitigate the pre-funded nature of operations and Crypto as a service: make it easier for clients to explore the crypto market with low friction,” highlighted B3.

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