The recent U.S. regulatory approval of perpetual futures contracts could mark a structural shift in how institutional capital engages with crypto derivatives. John Palmer, head of derivatives at Kraken, argues that sophisticated traders will drive initial adoption, with broader institutional participation expected to follow — mirroring the gradual uptake seen after spot Bitcoin ETF approvals. Perpetual futures, long dominant in offshore crypto markets, allow traders to hold leveraged positions indefinitely without expiry dates. Their entry into regulated U.S. markets could deepen liquidity, attract traditional finance participants, and bring greater price efficiency to crypto assets. Palmer's comments suggest the derivatives market may be entering a maturation phase comparable to the landmark ETF moment that unlocked mainstream investment access to Bitcoin.
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