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, 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, $3 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.
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