Luxor Technology and Bitnomial have made history by introducing the first fully regulated Bitcoin mining derivative product in the US, dubbed Bitcoin Hashrate Futures. This pioneering product, trading under the ticker $HUP, empowers miners to safeguard their revenue while offering investors a novel entry point into the Bitcoin mining market. Each contract represents 1 petahash (PH) and has a monthly duration, with settlement facilitated by Luxor's Bitcoin Hashprice Index, which tracks the value of hashrate, a digital commodity central to the contracts.

Matt Williams, Head of Derivatives at Luxor, hailed Hashrate Futures as the pinnacle of Bitcoin mining hedging products, poised to usher in a new era of hashrate trading characterized by enhanced transparency, security, and liquidity. This product has been thoughtfully designed for accessibility, allowing individuals with a Futures Commission Merchant (FCM) account connected to the Bitnomial exchange to seamlessly trade. Luxor has also established an Introducing Broker (IB) business to assist firms in onboarding to these FCMs.

Hashrate Futures complement Luxor's existing suite of hashrate financial products, encompassing physically delivered and non-deliverable Hashrate Forwards. Bitnomial's founder and CEO, Luke Hoersten, highlighted the unprecedented demand from the mining community for a futures product compatible with Luxor's spot and forwards offerings. Hashrate Futures provide a novel hedging method for Bitcoin miners and institutional investors, catering to the growing demand for crypto-based derivatives.

Bitnomial's unique position in the Bitcoin derivatives market is marked by physically-backed contracts, enabling traders to redeem them for Bitcoin rather than fiat. Notably, Bitnomial's Bitcoin Futures volumes and open interest reached all-time highs in the first quarter of 2024, reflecting the escalating interest in physically-backed Bitcoin financial products. The introduction of Hashrate Futures further enhances Bitnomial's comprehensive Bitcoin derivatives complex, which encompasses Bitcoin Futures, Options, Deci Futures, and now Hashrate Futures. This complex offers diverse tools for managing risk and investing in the Bitcoin market.

The launch of Hashrate Futures marks a significant milestone in the evolution of Bitcoin mining derivatives, offering a regulated and transparent platform for market participants. As the demand for crypto-based derivatives continues to grow, this product is poised to play a pivotal role in shaping the future of Bitcoin mining and investing. With its robust infrastructure and commitment to innovation, Luxor Technology and Bitnomial are at the forefront of this exciting development, empowering miners, investors, and institutions to navigate the dynamic landscape of Bitcoin mining with confidence.