tech/”>Luxor technology Corporation (Luxor) and Bitnomial, Inc. have announced the launch of the first exchange-traded Hashrate Futures in the US, according to a press release sent to bitcoin Magazine. These futures contracts, which will debut on the Bitnomial derivatives exchange later this month, are specifically designed to serve both bitcoin miners and institutional investors.
“The hashrate has some of the highest volatilities of any major commodity, and the April 2024 bitcoin halving will exacerbate this volatility,” said Luxor head of derivatives Matt Williams. “bitcoin miners need additional methods to mitigate this price risk and ensure the longevity of their businesses. Exchange-traded hashrate futures will allow them to quickly enter and exit hedging positions to de-risk their income streams, and the certainty of income should improve their credit profile with lenders, reducing the cost of raising capital “.
With bitcoin's halving imminent in 2024, Hashrate Futures aim to provide miners with a tool to hedge their future income streams while also offering investors access to a tradable derivative that tracks the hashrate. of bitcoin mining. The contracts, denominated in units of 1 petahash (PH) and with monthly durations, will reference Luxor's bitcoin Hashprice index for settlement, effectively tracking the value of the underlying commodity, i.e. the hashrate.
Accessible to those with Futures Commission Merchant (FCM) accounts connected to the Bitnomial exchange, Hashrate Futures is the latest addition to Luxor's suite of hashrate financial products.
“As we approach the bitcoin halving and witness unprecedented demand for spot bitcoin ETFs outstripping available mined supply, Bitnomial stands as a critical bridge in the crypto ecosystem,” said the Bitnomial founder and CEO Luke Hoersten. “Our listed and physically delivered hashrate bitcoin futures and options allow miners to navigate this evolving landscape seamlessly. Through Bitnomial, miners can efficiently trade hashrate-bitcoin futures spreads, gaining invaluable exposure to the denominated hashrate. into bitcoins while effectively protecting and delivering mined bitcoins directly to consumers through a federally regulated exchange. The convergence of innovation and regulation solidifies Bitnomial's commitment to fostering a robust and accessible market for all participants in the crypto space.”
As part of Bitnomial's suite of bitcoin products, these physically backed contracts aim to provide a unique opportunity to market participants, with growing interest evidenced by record volumes and open interest during Q4 2023.
