Luxor Technology and Bitnomial launched the first fully regulated Bitcoin mining derivative product for trading in the US on May 28.The new product — dubbed Bitcoin Hashrate Futures — aims to increase liquidity and transparency while reducing counterparty risk for market participants.Hashrate Futures, trading under the ticker $HUP, allow miners to hedge their revenue and give investors a new way to access the Bitcoin mining market.Each contract represents 1 petahash (PH) and has a monthly duration. Settlement uses Luxor’s Bitcoin Hashprice Index, which tracks the value of hashrate, a digital commodity central to the contracts.Luxor’s Head of Derivatives Matt Williams said:“Hashrate Futures are the pinnacle of Bitcoin mining hedging products. These contracts, the first fully regulated Bitcoin mining derivative, will usher in a new era of hashrate trading that is more transparent, secure, and liquid.”Luxor and Bitnomial designed the product for accessibility, allowing anyone with a Futures Commission Merchant (FCM) account connected to the Bitnomial exchange to trade the product.Luxor also established an Introducing Broker (IB) business to help firms onboard to these FCMs. Hashrate Futures complement Luxor’s suite of hashrate financial products, including physically delivered and non-deliverable Hashrate Forwards.Bitnomial founder and CEO Luke Hoersten said:“The mining community has shown unprecedented demand for a futures product fungible with Luxor’s spot and forwards offerings. Hashrate Futures provide a new hedging method for Bitcoin miners and institutional investors, meeting the growing demand for crypto-based derivatives.”Bitnomial’s unique position in the Bitcoin derivatives market offers physically-backed contracts, allowing traders to redeem them for Bitcoin instead of fiat.Exchange data indicates that Bitnomial Bitcoin Futures volumes and open interest hit all-time highs in the first quarter of 2024, reflecting the growing interest in physically-backed Bitcoin financial products.The addition of Hashrate Futures enhances Bitnomial’s comprehensive Bitcoin derivatives complex, which includes Bitcoin Futures, Options, Deci Futures, and now Hashrate Futures. This complex offers diverse tools for managing risk and investing in the Bitcoin market.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI. Stay ahead in the crypto game: Follow us on X for daily updates and analysis.Miller argued that the flagship crypto remains vastly undervalued and predicts a major shift in global capital governance.The report highlights significant gaps in law enforcement’s ability to track and recover illicit digital assets moved via privacy coins, layer-2 networks, and crypto mixers. DeFi Technologies recently adopted BItcoin as its primary treasury reserve asset.Japanese firm Metaplanet saw its stock surge 10% after its most recent Bitcoin acquisition.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
