Just something to keep in mind, but the market for (purely financial) commodities futures and the market for commodities futures that contain an actual delivery component operate in different ways. There is no reason to expect compute to be any different
Right, cash settlement doesn’t solve physical delivery risk. My point was that it’s the logical first step: it gives you a forward curve, which matters for financing. Over time, delivery-linked contracts can emerge once the standards and plumbing are in place. Both phases matter, but the cash-settled launch is what makes the whole thing possible
Just something to keep in mind, but the market for (purely financial) commodities futures and the market for commodities futures that contain an actual delivery component operate in different ways. There is no reason to expect compute to be any different
Yes, good point. My expectation would be that the first GPU futures contracts would be cash-settled since that’s easier to arrange.
You do know that cash settlement futures don’t provide the benefit that this article claims there would be, right?
Right, cash settlement doesn’t solve physical delivery risk. My point was that it’s the logical first step: it gives you a forward curve, which matters for financing. Over time, delivery-linked contracts can emerge once the standards and plumbing are in place. Both phases matter, but the cash-settled launch is what makes the whole thing possible
It’d be interesting to see an MBA student or think tank analyst expand on this - this market seems inevitable and groundbreaking