Saturday, November 27

B3 studies launching cryptocurrency futures trading

Brasil, Bolsa, Balcão (B3) is considering launching futures trading in cryptocurrencies for its clients. If confirmed, this movement would be just one more on the Brazilian stock exchange in the cryptocurrency market.

As of early 2021, cryptocurrency ETFs have been listed on the stock exchange.

These products that reflect cryptocurrency indices ended up attracting investors interested in participating in the crypto market, albeit indirectly. Anyway, this “pilot” of B3 with the decentralized digital currency market may have been decisive.

In a recent criticism of cryptocurrency brokers, the CEO of B3 even said that investors have more security investing in this market with the stock exchange.

B3 studies launching cryptocurrency futures

According to a publication of the state, reported by the Broadcast Column, B3 is planning to expand support for cryptocurrencies, listing futures.

It is worth remembering that the futures market differs from the spot trading market. With futures, investors try through derivative contracts to adjust the price behavior of an asset on a certain date.

For example, with futures trading, Bitcoin investors can bet that the currency price will fall on December 20, 2021. If this really happens, whoever bought the movement can then exercise their purchase on the date, earning with this speculation market.

But whoever sold the fall of Bitcoin, which is the same as betting against, must deliver the price at the quotation below what they would like, taking a handsome loss.

This market, it is worth remembering, is not very used by novice traders, and it is important to understand the rules for investing in order to avoid further losses. Professional investors also often use futures trading for hedging strategies, which are to protect equity from market fluctuations.

In any case, B3 shows the world that it is another exchange attentive to the cryptocurrency market, ready to innovate in more products and thus compete with the spot market brokers.

It is not yet clear what the futures market on the Brazilian stock exchange will be like

If the cryptocurrency futures market can land in Brazil, the expectation now is how this tool would be. One of the doubts is whether B3 would place the futures market against the Real or the Dollar, which may differ for investors.

Another study is about the user base that would use such an instrument. In the case of ETFs, the majority of B3’s customers are individuals.

The moment for B3 is still for market consultation, however, the exchange would hardly launch spot market negotiations, as in Brazil there is still no regulation on the subject. CME in the United States is one of the exchanges that trades futures, and in Argentina another one plans to launch soon as well.

One broker that lists cryptocurrency futures on the market is FTX, which lists futures with current quarter, next quarter, and perpetual maturities. So it would be one more detail to be observed by B3 as a launch strategy, as it is easily found in the cryptocurrency market.

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