JPMorgan: Institutional demand for perpetual contracts is limited, more used for speculative trading.

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BlockBeats News, June 29, JPMorgan stated that based on its interactions with clients and market participants, institutional demand for perpetual futures remains limited, and such products are viewed more as speculative trading tools rather than substitutes for traditional derivatives. The report pointed out that although perpetual futures support 24/7 trading and eliminate rollover costs, most trading comes from traders seeking leveraged directional exposure, not institutions with genuine hedging needs.

Additionally, the report noted that factors such as basis risk, lack of term structure, insufficient physical delivery, and the absence of traditional clearing safeguards for on-chain products all limit institutional adoption. (CoinDesk)

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