Argentina witnesses debut of first Bitcoin futures contract

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Argentina launched its first-ever bitcoin futures contract on July 13. The introduction of this investment vehicle comes merely three months after the country's securities watchdog approved the underlying index as part of its strategic innovation agenda.

In April, the Comisión Nacional de Valores, Argentina's securities regulator, approved the bitcoin futures index. This move aimed to foster collaboration between the public and private sectors to create new financial products.

The futures contract will be based on the BTC price quoted by various market participants offering BTC/ARS trading pairs. All transactions will be settled in Argentine pesos, with traders required to make deposits through bank transfers.

Initially, the bitcoin futures contract will be accessible exclusively to institutional investors. However, there is yet to be a definitive timeline for when retail investors will be able to participate in bitcoin futures trading within the country. The introduction of the futures index allows qualified investors to gain exposure to bitcoin in a transparent and regulated environment.

The launch of bitcoin futures in Argentina comes as many Argentinians have turned to cryptos to hedge against the country's rampant hyperinflation. Argentina witnessed an alarming annual inflation rate of 114 percent in May, the highest since 1991. With traditional financial instruments losing value rapidly, individuals increasingly seek alternative assets like bitcoin.