Amount compares values ​​traded on B3, with the cryptocurrency derivative, in the futures market, and bitcoin operations in Brazil in the spot market. The accumulated volume traded with Bitcoin futures contracts (BITFUT), released by the Stock Exchange on April 17, already totals R$223.3 billion, until August 20, according to data from the stock exchange. The amount is about 15 times higher than the R$14.2 billion traded in Bitcoin (BTC), in the spot market, on local exchanges in the same period, according to information from the monitor.biscoint.io platform.

This high movement of money, greater than the market value of Ambev (ABEV3), was driven by a series of factors, according to experts consulted by InfoMomoney, such as ease of investment, entry of investors, participation of regulatory bodies, reduction of spread (difference between the purchase and sale prices of an asset) and increase in liquidity.

“Before, you had to register with a brokerage firm abroad to be able to trade Bitcoin futures, and now you can do so here in Brazil. This ease and practicality of not having to send money abroad certainly helps and contributes a lot to this ever-increasing growth,” says Rodrigo Cohen, XP Investimentos ambassador. Bitcoin futures have been around for a long time on international exchanges, such as Binance, OKX and Bitget, and were launched about seven years ago by the CME Group in the United States. However, due to fears of the collapse of companies in the sector – such as FTX and Voyager Digital – as well as the lack of regulation, many local investors were wary of the international token derivatives segment, which was seen almost as a “Wild West.”

“As we implemented this solution (contracts on B3), we were able to attract not only people who were already in the cryptocurrency universe, operating through exchanges, but also those who were not yet operating because these contracts were not under the protection of B3 and the Securities and Exchange Commission (CVM),” says trader Alexandre Wolwacz, known as Stormer. In May, the first full month of the new derivative, almost 705 thousand BITFUT contracts were traded, moving R$24.2 billion. In June, both the number of contracts and the value doubled compared to the previous month. In July, the number of financial instruments traded in the period broke a record and jumped to almost 2.4 million, with a financial total of R$84.2 billion, which represents an increase of 76.88% compared to the previous 30 days. Spread reduction

In addition to the regulated environment, the entry of new investors and the increase in trading volume boosted the liquidity of contracts, resulting in a reduction in the spread, which also contributed to the sector's growth, according to the sources. In April, when BITFUT was released for trading, the difference between the purchase and sale prices was in the range of 80 to 110 points; currently, this difference is 20 points.

In practice, a lower spread means that the cost of trading the asset is lower, since the difference between the price at which it can be bought and the price at which it can be sold is reduced. “And this is very good, because it allows you to enter and exit positions faster and at a lower cost,” says Stormer. Cohen says that the scenario is like a snowball effect. “One thing leads to another. As the volume increases, you also have more and more liquidity, that is, more and more people trading, who at first were afraid of getting a very high spread and ending up paying a higher price, because there were no people to sell at that price. So now there is less fear and greater security in being able to trade.”

Positive scenario

Another factor that boosted the BTC futures market on B3, according to experts, was the current positive moment of the largest cryptocurrency on the market. Driven by the launch of Bitcoin spot ETFs (index funds) in January, the crypto reached a new all-time high in dollars (almost US$ 74 thousand) in March and a record in Brazilian currency (R$ 380.5 thousand) in July, due to exchange rate differences. In addition to the renewal of price records, the asset also entered the political sphere after former President Donald Trump, a longtime critic of the sector, fully embraced cryptos, even stating that he will keep a BTC reserve in the US. “All these events cause Bitcoin to move, obviously also moving Bitcoin futures here in Brazil,” says Cohen. Investor profile

According to experts, the profile of investors who trade BTC futures contracts is still predominantly made up of more experienced traders with advanced knowledge. Stormer says that the volatility of these assets still intimidates professionals who are less familiar with technical analysis, in addition to putting off beginner investors.

Cohen reports that, with the improvement in liquidity, he has also seen an increase in institutional investors, mainly because local Bitcoin still has a price difference with BTC from abroad, which can be taken advantage of. In addition, he says, the increasing entry of individuals also encourages the participation of large investors, as they help with liquidity.

How to invest and risks

Bitcoin futures contracts can be traded on B3. They are agreements to buy or sell crypto on a specific future date that allow investors to have exposure to the price without having to own the cryptocurrency. They are worth 10% of the value of the crypto in reais. In other words, as BTC was trading at R$326,000 this Wednesday (21), 1 BITFUT was worth R$32,600. As with BTC, known for its high volatility, the same is true for Bitcoin futures contracts. This means that prices can change drastically in a short period of time, leading to significant gains or losses. That is, investing a greater amount than what is being considered), which can both amplify profits and erode equity.#BinanceSquareFamily #CryptoMarketMoves #bitcoin #Binance