Luxor and Bitnomial launch Bitcoin mining derivatives product
Hashrate Futures contracts have a 1 petahash (PH) size for monthly durations and use Luxor’s Bitcoin Hashprice Index as the reference rate for settlement
BTC mining firm Luxor Technology Corporation and Bitnomial Inc. have launched a Bitcoin mining derivative product on Bitnomial’s United States derivatives exchange.
On May 28, Bitnomial announced the launch of Hashrate Futures, a derivative futures contract for trading the computing power of the Bitcoin blockchain.
Bitnomial claimed the product, trading under the ticker HUP, offers a way for miners to hedge their revenue and for investors to gain exposure to the Bitcoin mining hash rate.
A futures contract is a financial derivative where two parties agree to buy and sell a financial asset at a future date for an agreed-upon price.
This product trades hash rate — Bitcoin’s computing power — and is priced according to “hashprice,” Luxor’s measure of Bitcoin mining revenue potential.
Hashrate Futures contracts have a 1 petahash (PH) size for monthly durations and use Luxor’s Bitcoin Hashprice Index as the reference rate for settlement.
Luxor also offers non-deliverable Hashrate Forwards which are over-the-counter products and do not settle on an exchange regulated by the Commodity Futures Trading Commission.
Bitnomial founder and CEO Luke Hoersten explained Hashrate Futures are fungible with the firm’s physical Bitcoin Futures, “enabling Hashrate to Bitcoin Futures spreads.”
“These spreads allow participants to take returns in either USD or BTC, or isolate hash rate risk from Bitcoin price risk,” he added.
