Brazil Wants BTC: 7,400 Bitcoin Futures Contracts Created On First Day Of Trading

Scott Matherson

1 year ago

3 mins read

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After announcing in March its plans to include Bitcoin futures in its offerings, B3, a Brazilian stock exchange, has officially opened up trades, achieving a significant milestone on its very first day of trading Bitcoin futures.

B3 Bitcoin Futures Sees Surge In Demand

Following its launch of Bitcoin futures on April 17, B3 experienced a massive wave of demand and interest from cryptocurrency enthusiasts eager to trade the newly listed Bitcoin futures. The stock exchange reported that on the debut trading day, more than 7,400 Bitcoin futures contracts were actively traded.

This unprecedented trading volume underscores investors’ strong interest in cryptocurrency derivatives as well as the increasing demand for BTC exposure among Brazilian cryptocurrency traders and enthusiasts.

Notably, B3 disclosed that the demand for Bitcoin futures on its exchange was so profound that it had hit 111,000 buy or sell orders on the trading screen. The market had displayed intense participation in the newly launched contracts, with the Director of Listed Products at B3, Marcos Skistymas, affirming that the heightened demand resulted from B3’s introduction of its first-ever derivative linked to a cryptocurrency.

The introduction of Bitcoin futures marks a significant step forward for the stock exchange, aligning with its vision to expand its offerings to cater to users’ needs. Skistymas has also indicated that the market’s response to the recently listed Bitcoin futures was overwhelmingly positive, reflecting a significant potential for these contracts within the Brazilian market.

BTC Futures To Act As A Hedge Against Market Volatility

According to Skistymas, Bitcoin futures were a “suitable instrument” that could become a hedge against Bitcoin, potentially providing Brazilian investors a means to manage the flurry of risks associated with Bitcoin’s price fluctuations.

For more clarity, a Bitcoin future is a contract between investors who wager on the future price of the pioneer cryptocurrency, providing exposure to Bitcoin without the need to purchase it. Given btc’s high volatility and price fluctuations during certain market conditions, accurately predicting the price of the cryptocurrency can be challenging. Additionally, only a handful of crypto analysts and investors have managed to forecast Bitcoin’s price actions with precision.

At the beginning of the year, the price of BTC surged from below $50,000 to an all-time high of more than $75,000 in March 2024. As of writing, the cryptocurrency is trading at $66,129 after witnessing a major price correction and plummeting by 0.09% over the past month, according to CoinMarketCap.

Irrespective of BTC’s unpredictability and price variations, the launch of Bitcoin futures on B3 has the potential to bring in a new era of adoption among Brazilian investors, providing them with fresh opportunities to diversify their portfolios with these regulated financial instruments.

BTC price falls below $66,000 | Source: BTCUSD on Tradingview.com

Featured image from Business Post Nigeria, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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