Luxor Technology Corporation and Bitnomial, Inc. have introduced Hashrate Futures on Bitnomial's US-based derivatives exchange, marking the first Bitcoin mining derivative product to trade on a regulated exchange. This innovative product offers miners a tool to hedge their revenue and provides investors with a derivative directly tied to Bitcoin mining hashrate.

The Hashrate Futures contracts trade under the ticker $HUP, with a size of 1 petahash (PH) for monthly durations. Luxor's Bitcoin Hashprice Index is used for settlement, tracking the value of hashrate. Matt Williams, Luxor's Head of Derivatives, emphasized that these contracts offer market participants the first fully-regulated Bitcoin mining derivative, increasing transparency, security, and liquidity in Bitcoin mining.

Anyone with a Futures Commission Merchant (FCM) account connected to the Bitnomial exchange can access the Hashrate Futures. Luxor has also established an Introducing Broker (IB) business to assist firms with onboarding to these FCMs. Luke Hoersten, Founder and CEO of Bitnomial, noted the demand from the mining community for a futures product, providing bitcoin miners and institutional investors a new method of hedging.

Bitnomial's Bitcoin Complex now includes Bitcoin Futures, Options, Deci Futures, and Hashrate Futures, creating a comprehensive Bitcoin derivatives complex in the US market. Bitnomial is unique in offering physically-backed contracts, allowing redemption for Bitcoin instead of fiat. According to exchange data, Bitnomial Bitcoin Futures volumes and open interest reached all-time highs during Q1 2024, indicating a growing interest in physically-backed Bitcoin financial products.

Luxor partnered with Volcano Energy last year to launch a Bitcoin mining operation in El Salvador, leveraging the country's geothermal energy for sustainable Bitcoin mining. The launch of Hashrate Futures demonstrates the growing demand for innovative cryptocurrency derivatives products. As the cryptocurrency market continues to evolve, products like Hashrate Futures will play a crucial role in shaping its future.