The first bitcoin futures contract just launched in Argentina, allowing investors to speculate on the future price of BTC. For crypto investors in the Latin American country, this is significant and a signal that Argentina is embracing crypto innovation. The futures contract is based on a bitcoin index provided by Matba Rofex, the largest agricultural futures & options exchange in South America.

Back in April, Argentina’s National Securities Commission (CNV) gave Matba Rofex the go-ahead on its Bitcoin Futures after making some regulations.  The newly introduced futures contract for BTC will be settled in Argentine pesos, and at this time, it will only be available to qualified institutional investors like investment funds or companies.

The contract will only be equivalent to one-tenth of Bitcoin and will be monitored by the price of BTC quoted by several market participants providing BTC/ARS trading pairs. 

Argentina has struggled with economic instability and hyperinflation in recent times. The national currency, the peso, has lost a huge chunk of its value in the past year alone. As a result, many have turned to BTC and other cryptocurrencies as a store of value and hedge against inflation.

Bitcoin has been on an uptrend from its lows at the beginning of this year, and the potential for huge gains is what draws speculators and many crypto fans. 

Bitcoin futures contracts enable investors to gain significant exposure to BTC with only a fraction of its total and they have introduced more mainstream interest in cryptocurrencies, especially from institutional investors, although they can be highly volatile. 

It is unclear when the contract will become available to retail investors. But as bitcoin futures trading grows in Argentina, it will help establish BTC’s value in the country.

The CNV also announced in February its plan to develop and regulate conditions for crypto companies in Argentina. In January, Argentina’s Ministry of Economy also prepared a similar measure, which would require holders of cryptocurrencies to declare their holdings.

With Argentina launching its first Bitcoin futures contract, all eyes are now on Brazil to follow suit. As South America’s largest economy, Brazil is well-positioned to become a major player in the cryptocurrency market. 

Last year, B3, the Brazilian Stock Exchange, announced its plans to launch a Bitcoin and Ethereum futures contract, although this is yet to be launched. Previously scheduled for June, it has now been postponed to the second half of 2023.

As for BTC, the cryptocurrency is performing incredibly well, beating the $31,000 resistance once more on Thursday.

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