Luxor miner launches BTC hashrate futures on US exchange Bitnomial

The product is available to industry companies and institutional investors

29.05.2024 - 08:30

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3 min

What’s new? Bitcoin miner Luxor Technology has launched the Bitcoin blockchain hashrate futures on the US crypto exchange derivatives Bitnomial. The new product under the ticker HUP will allow investors to speculate on the future value of the total computing power of the first cryptocurrency’s network, and miners to hedge their income.

Press release

What else is known? Contracts with a monthly expiration and a size of 1 petahesh (PH) use Luxor’s Bitcoin Hashprice index as a base rate for calculations.

The hashprice is an index that reflects the potential revenue from BTC mining. It denotes the expected cost of 1 TH/s hashing power per day and determines how much a miner can earn at a certain hashrate level.

Bitnomial founder and CEO Luke Hoersten explained that hashrate futures are fungible with physical bitcoin futures offered by the exchange, allowing traders to receive spreads in both USD and BTC or to isolate hashrate risk from bitcoin price risk.

JPMorgan: Bitcoin hashrate declines due to the departure of inefficient miners

The excitement around the Runes protocol provided temporary support for industry participants

According to HashRateIndex, the current hashrate is $0,053 per 1 TH/s per day. On the eve of the April 20 halving, the figure jumped to $0,14, but then fell sharply right after the event that halved the reward to miners for mining blocks. Overall, the index has fallen by 46% since the beginning of the year.

HUP futures on Bitnomial are available to Futures Commission Merchant (FCM) account holders. To mark the launch, Luxor has also established a brokerage firm to help companies begin trading the new products.

The parties have noted an unprecedented increase in demand for the futures product from miners. The HUP will provide industry participants and institutional investors with a previously unavailable hedging method.

Share of transactions with the Runes protocol in the Bitcoin network fell by 84% in a month

Within days of its launch, the protocol was surpassing regular bitcoin transactions in popularity

Bitnomial operates as a crypto exchange as well as a clearing and brokerage firm under the oversight of the US Commodity Futures Trading Commission (CFTC).

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