On July 13, 2023, Argentina signed its first Bitcoin futures contract, stated Cointelegraph. This is expected to occur just three months after the country’s securities approved the underlying index as part of their innovation agenda.
With insights from Matba Rofex, a trading platform, lead of the investment, it is the first Bitcoin (BTC $31,308) futures contract in Latin America. A futures contract is believed to allow buyers to bet on the future price of a commodity or other asset, such as Bitcoin. Supposedly, as per the agreement, buyers and sellers must purchase and sell the assets according to the mentioned date, Cointelegraph added.
Sources revealed that the Bitcoin futures contract would be based on the price of BTC mentioned by several market participants allowing BTC/ARS trading pairs. Supposedly, all trades will be settled with Argentine pesos, and traders will need to make deposits through bank transfers, Cointelegraph highlighted.
As per local media reports, the product will initially be available only to institutional investors. There’s no clear timeline for when retail investors can trade Bitcoin futures contracts in the country.
(With insights from Cointelegraph)