Expected to be launched later this year, the Bitcoin (BTC) futures contract on B3 (B3SA3), the Brazilian stock exchange, will use the Hashdex Nasdaq Bitcoin Reference Price index as a price reference, he told InfoMoney a source with knowledge of the subject.
The index was created by the Brazilian manager Hashdex together with the American exchange Nasdaq and seeks to reflect the price of Bitcoin in dollars, being used as a reference by the ETF (exchange-traded fund) BITH11, from Hashdex itself.
During the first quarter earnings call, in May of this year, B3’s chief financial officer, André Milanez, had already stated that the Brazilian stock exchange intended to launch its Bitcoin futures product within 6 months. At the beginning of the year, B3 also commented on an Ethereum (ETH) futures contract until 2023, but there is still no further information, such as launch date and reference index for the product.
The definition of the benchmark index is closely monitored by the market because it is the first step towards finally creating a crypto futures market in Brazil, allowing leveraged operations with these assets in a regulated market and with the large structure of the Exchange. This can also be important to unlock the entry of new institutional investors, who will now be able to operate using strategies that are only allowed through futures, such as hedging.
InfoMoney contacted B3, but did not receive a response until the article was published.
Futures contract is a type of product traded on the Stock Exchange widely used for hedging (protection) and leverage strategies, in addition to allowing some other structured operations. In short, this contract represents a commitment to buy or sell a certain asset at a future date at a predefined price.
To create a futures contract, it is necessary to have a reference index, which is used as a basis for the current price of the asset to which this derivative refers. Today in Brazil there are several types of futures contracts, such as the dollar, gold, soybeans, cattle, among others.
Overseas, CME (Chicago Mercantile Exchange), the world’s largest commodity exchange, has had a Bitcoin futures in USD since 2017 and recently also launched a contract for the cryptocurrency in Euro.
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