Argentina Approves First Regulated Bitcoin Futures Index

The National Commission of Value (CNV), the securities regulator of Argentina, has approved the country’s first regulated Bitcoin futures index to debut on the Matba Rofex exchange. The Bitcoin (BTC) futures contract will begin trading in May, making it the first regulated Bitcoin futures index in Latin America. The approval of the Bitcoin futures index is part of Argentina’s strategic innovation agenda, which aims to develop new and creative products in the capital market through public-private collaboration.

The Bitcoin futures contract will be based on the price of BTC provided by various entities in Argentina offering BTC/ARS trading pairs. All trades will be settled in the national fiat currency, and traders will be required to deposit Argentine pesos through bank transfer. To provide and use payment services in the country, an exchange must have a valid contract with a payment services provider registered with the Central Bank of the Argentine Republic.

The launch of the regulated Bitcoin futures index offers qualified investors a safe and regulated way to gain BTC exposure in a transparent environment. However, the CNV has also asked the Matba Rofex exchange to incorporate alerts that warn investors of the risks associated with such financial instruments. With the high inflation rate in Argentina, many citizens have turned to Bitcoin to mitigate its effects. The country’s peer-to-peer Bitcoin trading volume has also hit new highs as a result.

The approval of the Bitcoin futures index comes just a week after Binance announced its expansion to Argentina, indicating the growing interest in cryptocurrencies in the country. Argentina has taken a pro-crypto stance over the years, with crypto adoption nearly double its neighboring countries. The Ministry of Economy recently proposed a bill that encourages citizens to declare their crypto holdings and incentivizes them with tax benefits.

In conclusion, the approval of the Bitcoin futures index in Argentina provides a safe and regulated way for qualified investors to gain BTC exposure in a transparent environment. As the country struggles with high inflation, the launch of the Bitcoin futures contract comes as citizens turn to Bitcoin as a way to mitigate its effects. With a pro-crypto stance and growing interest in cryptocurrencies, Argentina is becoming a favorable destination for crypto-related businesses and investments.


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What To Expect as $6B Worth of Bitcoin Options Are Set to Expire This Friday

Options trading in the Bitcoin (BTC) and cryptocurrencies ecosystem has become common nowadays and the volumes kept growing by the day.

Cryptocurrency exchanges are improving their products to capture this growing investment bet, as the volatility in the market provides for new opportunities in this niche investment alternative.

Options contracts permit investors and traders to buy a particular asset at an agreed price in the future. With options, one might have entered an agreement when Bitcoin was at $10,000 sometime in September 2020 to repurchase the coins at the exact amount after six months – which is this March when Bitcoin is trading well above $50,000. Such an investor would have made enough gains seeing the price has increased five-fold.

A variation of this investment move is seen in Bitcoin futures contracts and the difference between the two is that while futures mandates you to buy Bitcoin through a contractual agreement at the point of the contract expiry, options places no such obligation. From the trends documented by, this liberty to either buy the asset or not can create wild price swings for Bitcoin.

As much as $6 billion worth of Bitcoin options are set to expire this Friday, March 26, and the actions of the contract holders can have a corresponding impact on the price of the Bitcoin in the coming days or weeks. If investors choose to buy Bitcoin at the point of the options expiry, there may be upward and positive pressure on BTC’s price. An opposite trend will be ushered in if the options are not exercised and investors take profit.

The price of Bitcoin is currently falling and the “digital gold” asset is trading at $53,949.71, down 6.73% in the past 24 hours at the time of writing according to CoinMarketCap.

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Investors Double Down on Derivatives Market as Bitcoin Futures Contracts Hit New All-Time High

Investors in the cryptocurrency ecosystem have doubled down on the derivatives market, an action that is marked by the futures contract in the space hitting a new all-time high.

According to Glassnode, the open interest across major exchanges is currently sitting on the verge of the $20 billion mark, the highest it has ever reached.

Crypto derivatives are secondary contracts or financial tools that derive their value from a primary underlying asset, which in this case is either Bitcoin (BTC), Ethereum (ETH), or other altcoins. Futures are investment contracts that enable an investor to gain exposure to an asset without directly owning such assets. Futures work by letting traders or investors speculate on the future price of an underlying asset.

Futures are a type of derivatives product and the prospects of increased gains have made them quite popular amongst retail and institutional investors in recent years. While the United States laws are still largely ambiguous, wading into the derivatives market has been a better investment option for most corporate firms, who want to take advantage of the asset price volatilities to cart away some gains.

Derivatives and futures trading is a highly specialized market trading that is reserved for professionals; however, with the increasing traction they are currently gaining, derivatives-focused exchanges appear to be in a frantic race to gain a fair share of the market, irrespective of the qualification of the trader involved.

Per the Glassnode data, the open Interest in exchanges offering derivatives or futures products has been on a steady uptrend since September 2020, to date. While the growth has been consistent, there was a sharp correction to the uptrend in February 2021, the exact period when Bitcoin hit its all-time high. 

The current uptrend is an indication that the crypto market is healthy across the board with investors aiming to tap into every aspect of innovation in the industry.

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Bitcoin (BTC) $ 26,586.12 0.04%
Ethereum (ETH) $ 1,594.46 0.04%
Litecoin (LTC) $ 64.75 0.38%
Bitcoin Cash (BCH) $ 208.98 0.24%