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Perpetual futures could become crypto's next ETF moment

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The rollout of regulated perpetual futures in the U.S. could follow a familiar path to the one taken by spot bitcoin exchange-traded funds (ETFs) in seeking mass adoption.

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Summary

Regulated perpetual futures, long dominant on offshore crypto venues, are starting to debut in the U.S., with Kraken set to launch them on Kraken Pro after securing CFTC-regulated licenses through its NinjaTrader and Bitnomial acquisitions. John Palmer, head of derivatives at Kraken, said he expects sophisticated proprietary traders and retail users to adopt U.S. perps first, with investment advisers and large asset managers following more slowly. Proponents say perpetual futures’ lack of expirations and simpler structure compared with dated futures, along with eventual use of crypto as collateral, could transform the still-nascent U.S. crypto derivatives market and reduce reliance on offshore platforms.

Read full article at CoinDesk →