Luxor and Bitnomial Launch First-ever Bitcoin Hashrate Futures
Luxor Technology Corporation (Luxor) and Bitnomial, Inc. announced the launch of the first exchange-traded hashrate futures in the United States, according to a press release sent to Bitcoin Magazine. Scheduled to debut on Bitnomial’s derivatives exchange by the end of this month, this futures contract is specifically tailored for both Bitcoin miners and institutional investors.
“Hashrates have the highest volatility of any major commodity and the Bitcoin halving in April 2024 will further exacerbate this volatility,” said Matt Williams, Head of Derivatives at Luxor. “Bitcoin miners need additional ways to mitigate this price risk to ensure the longevity of their businesses. “Exchange-traded hashrate futures allow you to quickly enter and exit hedging positions to reduce risk in your revenue stream, while the certainty of your returns will improve your credit profile to lenders, lowering your cost of capital.”
With the upcoming Bitcoin halving in 2024 in mind, hashrate futures provide miners with a tool to hedge their future revenue streams while also providing investors with access to tradable derivatives that track the Bitcoin mining hashrate. We aim to provide access. The contract, denominated in units of 1 petahash (PH) and running on a monthly basis, references Luxor’s Bitcoin hash price index for settlement, effectively tracking the value of the underlying commodity, or hash rate.
Hashrate futures, accessible to those with a futures commission seller (FCM) account linked to the Bitnomial exchange, are the latest addition to Luxor’s suite of hashrate financial products.
“As we approach Bitcoin halving and see unprecedented demand for spot Bitcoin ETFs outpacing available mining supply, Bitnomial is serving as a pivotal bridge in the cryptocurrency ecosystem,” said Luke Hoersten, Bitnomial Founder and CEO. said: “Our listed hashrate and physically delivered Bitcoin futures and options allow miners to seamlessly navigate the evolving landscape. With Bitnomial, miners can efficiently trade the hashrate-Bitcoin futures spread to create valuable You can effectively hedge your mined Bitcoin through federally regulated exchanges and deliver them directly to consumers while gaining Bitcoin-denominated hashrate exposure.The convergence of innovation and regulation creates a powerful and accessible market for all participants in the cryptocurrency space. It solidifies Bitnomial’s commitment to fostering .”
These physically backed contracts, part of Bitnomial’s Bitcoin product complex, are planned to offer unique opportunities to market participants, with growing interest evidenced by record trading volumes and open interest during the fourth quarter of 2023.
