Crypto derivatives platform FTX has launched a new futures product that relies on Bitcoin’s hashrate rather than price.
According to an official blog post, the FTX Hashrate Futures will start at the beginning of a quarter and end with the quarter. The Hashrate Futures expiration value will be calculated by averaging each block mined in the quarter, together with the specific difficulty for that block. The resulting figure will then be divided by 1 trillion.
Given the impossibility to accurately measure the hashrate over time, FTX chooses to focus on the difficulty instead. As of May 14, the network difficulty was pegged at 16.105t while the hashrate was 115.74m, according to Blockchain.com.
Generally, the higher the difficulty in mining BTC blocks, the more secure the BTC network is, and the more favourable the futures contract becomes.
Although BTC’s hashrate has been dropping since the halving occurred, the 2020 Q3 and Q4 contracts have improved by up to 13%.
FTX’s launch of BTC Hashrate Futures is coming exactly a week after Bitfinex’s launch of a BTC dominance perpetual swap on its platform. In addition to its oil futures and volatility tokens, FTX is repositioning itself for the futures market.
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