Bitnomial Introduces Bitcoin Hashrate Futures Trading
Bitnomial, an American cryptocurrency derivatives exchange, has launched a new product under the ticker HUP, allowing investors to trade futures on Bitcoin blockchain hashrate. This innovative tool from mining company Luxor Technology enables investors to speculate on the future computational power of the Bitcoin network and provides miners with a way to hedge their income.
The HUP futures will have monthly expiration dates and use the Bitcoin Hashprice index from Luxor as the underlying price for calculations. Hashprice is an indicator that determines the potential income from Bitcoin mining, helping miners estimate their earnings based on computational power.
Luke Hoersten, founder and CEO of Bitnomial, shared that the new hashrate futures will be fungible with physical Bitcoin futures already offered on the exchange. This allows traders to profit from spreads in both US dollars and Bitcoin, while also managing risks related to changes in hash rate.
Bitnomial, a cryptocurrency exchange regulated by the US Commodity Futures Trading Commission (CFTC), is paving the way for the development of financial instruments in the cryptocurrency market with the introduction of BTC hashrate futures. This move offers new opportunities for risk management and profitability in the digital asset space.
