Luxor Bitcoin Hashrate Futures Go Live on Bitnomial After Regulatory Approval

Luxor Technology Corporation and Bitnomial, Inc. have launched the first-ever regulated Bitcoin mining derivative product on a US exchange. These Hashrate Futures are now trading on Bitnomial’s derivatives exchange, providing miners and investors a tool to hedge revenue and gain exposure to Bitcoin mining hashrate.

Luxor’s Bitcoin Hashprice Index tracks the value of hashrate, serving as the reference rate for these contracts. Trading under the ticker $HUP, each contract represents one petahash (PH) for monthly durations, according to Prnewswire.

Matt Williams, Luxor’s Head of Derivatives, stated that Hashrate Futures are a pinnacle of Bitcoin mining hedging products. The launch advances Luxor’s vision since the creation of the Hashprice Index in 2020, offering transparency, security, and liquidity in hashrate trading.

Bitnomial CEO Luke Hoersten highlighted the unprecedented demand for futures products that are fungible with Luxor’s spot and forwards offerings. These Hashrate Futures enable Bitcoin miners and institutional investors to hedge risk more effectively, facilitating returns in either USD or BTC.

The addition of Hashrate Futures complements Bitnomial’s existing Bitcoin Product Complex, which includes physically delivered Bitcoin futures and options. This complex has seen record volumes and open interest in Q1 2024, reflecting growing interest in physically-backed Bitcoin financial products.

Luxor and Bitnomial have designed these contracts to meet the needs of the mining community, providing a regulated platform for trading Bitcoin mining derivatives. The availability of Hashrate Futures is expected to enhance the market’s ability to manage risk and optimize operations in the evolving landscape of Bitcoin mining.