FTX's new lumber market sees more than $4 million in trading volumes since launch
May 6, 2021, 5:00PM EDT
1 min read
Traders on FTX have been longing logs.
During the market debut of a new contract tied to lumber, the price of the new cash-settled contract surged above $800 from around $760 earlier in the trading session.
The launch comes as lumber demand surges. As noted by Fortune, the price of lumber has surged by more than 280% thanks to "pure panic" as builders "scramble for supply."
On Wednesday, lumber futures rallied above $1,500 for the first time ever, as reported by Bloomberg News.
Since launching this morning, the market saw more than $4.6 million in trading volume at the time of writing, according to data reported by FTX.
FTX is known for offering products in unique assets outside of the crypto market, including pre-IPO contracts in companies ahead of their market debut. The firm, for instance, offered contracts in Airbnb and Coinbase ahead of their respective market debuts.
To be sure, $4 million in trading volumes is a tiny fraction of the turnover FTX sees in its crypto market. And therefore is a much smaller revenue opportunity for the firm.
Still, the contract is only available in a select few regions for trading, including Australia and Russia. It is not available in the US or European Union.
But FTX CEO Sam Bankman-Fried made it clear it's available in one place with demand for lumber.
"Don't forget about the Bahamas! Huge lumber hedging demand," he said in a message.