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Luxor Technology Corporation and Bitnomial, Inc. have launched an innovative product on Bitnomial’s US-based derivatives exchange: Luxor Bitcoin Hashrate Futures. This makes it the first Bitcoin mining derivative to be traded on a regulated exchange of any kind.
This is expected to bring a multitude of benefits to market participants, such as miners and investors, through increased liquidity, transparency of contract settlements, and a reduction in counterparty risk.
$HUP is the ticker for the hashrate futures contract, available in a 1 PH contract size and with monthly expiration. These futures rely on the settlement value derived from Luxor’s Bitcoin Hashprice Index, a reference rate linked to hashrate, which is the basis of Bitcoin mining.
According to Matt Williams, the Head of Derivatives at Luxor, Hashrate Futures are integral to the mining industry because they allow miners to hedge their revenues from bitcoin.
“Hashrate Futures are the pinnacle of Bitcoin mining hedging products, one that Luxor first envisioned when we created the Hashprice Index in 2020. These contracts offer market participants the first fully-regulated Bitcoin mining derivative, and they will usher in a new era of hashrate trading that is more transparent, secure, and liquid,” he said.
Any participant with a Futures Commission Merchant (FCM) account on Bitnomial can trade these futures that meet the demand for crypto derivatives products.
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