Brazil’s main stock exchange, B3, plans to launch overnight trading sessions covering Bitcoin ETF and Ibovespa futures later this year. The move will extend trading hours to 9:45pm local time (12:45am in London and 7:45pm in New York). This is in response to increasing demand from individual investors seeking more flexible trading options.
In addition to Bitcoin, B3 plans to launch trading in the Ibovespa ETF, the US S&P 500 equivalent.
“There are quite a few people who want to trade at the end of the day. We recognize the pent-up demand for that work,” B3 Chairman Gilson Finkelsztain said at a news conference Thursday. But he said: , “This is a test. The cost increases, the risk increases. We need to test whether it will be good or bad for liquidity.”
This expansion of trading hours marks more than just a logistical change, but a broader shift in Brazil’s approach to financial markets. Brazil is at the forefront of cryptocurrency adoption and has the largest number of cryptocurrency ETFs in the Americas. HASH11, the country’s first cryptocurrency ETF, was approved in 2021, setting a precedent in the region. In contrast, the United States recently approved its first spot Bitcoin ETF in January 2023 and there are no applications for a spot cryptocurrency ETF containing altcoins.
Finkelsztain also said B3 is considering extending its normal trading session by an additional hour and wants to increase liquidity as a strategic goal this year.
Brazil’s Love for Cryptocurrency
Integrating digital assets into traditional financial structures is becoming increasingly common. Major banks and brokers in Brazil are intensively exploring blockchain and cryptocurrency-centric business models. Itaú (Brazil’s largest private bank) is looking into tokenized assets, while Nubank, Brazil’s largest digital bank, has introduced its own cryptocurrency, NucoinEven, the Central Bank of Brazil, and is testing its own CBDC, DREX, which will run on a distributed ledger. Additionally, several major banks have developed partnerships or exclusive brokers to offer Bitcoin funds and ETFs to the general public.
André Portilho, Head of Digital Assets at BTG Pactual, commented on the evolving cryptocurrency market:
“The cryptocurrency market is increasingly resembling the stock market,” André Portilho, head of digital assets at Brazil’s largest investment bank, told B3 today, noting that Bitcoin’s volatility is gradually decreasing. “Bitcoin’s volatility has been decreasing and is currently lower than many Nasdaq stocks in the biotech space.”
Brazil’s regulatory environment has also aided this growth. On the last day of President Bolsonaro’s term, cryptocurrencies were officially approved as a means of payment.
Portilho’s statement shows how many Brazilian investors are looking at cryptocurrencies.
“Evaluating whether to invest in crypto assets is very similar to any other investment. It depends on your portfolio and personal profile,” he explained. He emphasized the importance of understanding the nature of an asset and its potential impact on the risk and return of an investment portfolio.
Edited by Ryan Ozawa.
