JPMorgan said that based on its discussions with clients and market participants, institutional demand for perpetual futures remains limited, with such products being viewed more as speculative trading tools rather than alternatives to traditional derivatives. The report noted that although perpetual futures support 7×24 trading and eliminate rollover costs, most trading comes from traders seeking leveraged directional exposure, rather than institutions with genuine hedging needs. Additionally, the report believes that factors such as basis risk, lack of term structure, insufficient physical delivery, and the absence of traditional clearing safeguards for on-chain products have all limited institutional adoption. (CoinDesk)

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 3
  • Repost
  • Share
Comment
Add a comment
Add a comment
GateUser-34d2b0ab
· 6h ago
24-hour trading is an advantage for retail investors, but a liquidity trap for institutions.
View OriginalReply0
ForkliftFaye
· 6h ago
It's normal for institutions to look down on perpetual contracts, after all, the risk control systems are completely different.
View OriginalReply0
PerpMoodSwing
· 6h ago
The lack of physical delivery indeed discourages traditional capital. This report is spot on.
View OriginalReply0
  • Pinned