Crypto derivatives platform FTX has just announced the launch of its own Bitcoin hashrate futures.
This new instrument helps crypto miners hedge their risks against Bitcoin’s mining difficulty adjustments.
This type of futures, which are settled to the average difficulty of Bitcoin mining over a certain period of time, represent approximately the total hashrate used to mine the crypto.
FTX is the first renowned platform to launch them, however, crypto brokerage company BitOoda launched its own hashrate contract earlier this year.
According to the exchange:
"It's impossible to exactly measure hashrate--the best you can do is approximate it from block times and difficulty. However, given that difficulty adjustments attempt to maintain 10m block times, over long periods of time the average hashrate will be proportional to the average difficulty. So that means that, roughly speaking, difficulty futures should behave similarly to hashrate futures."
These new futures have been rolled out almost 9 months after they were first announced back in August 2019.
FTX claims its new investment instrument has received a lot of interest from miners and companies in the industry.
The platform has launched 3 futures contracts:
- Q3 2020, which expires to the average mining difficulty of July-September 2020.
- Q4 2020, which expires to the average mining difficulty of October-December 2020.
- Q1 2021, which expires to the average mining difficulty of January-March 2021.
In late April iHodl reported FTX had launched oil futures due to high user demand.
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