Perpetual futures, a staple in crypto trading, have officially arrived in the US regulated market, sparking both interest and caution on Wall Street. With trading volumes reaching $1 billion within a week of launch, the product's potential is undeniable. However, big banks are hesitant to dive in, citing the need for clearer rules, mature infrastructure, and sufficient liquidity. Instead, proprietary trading firms, market makers, and newer clearing firms are taking the lead.
The product's ability to provide 24-hour trading and help manage weekend risk makes it an attractive option for traders. Nevertheless, regulatory debates and competitive disputes are emerging, with incumbent exchanges seeking to protect their existing businesses. As the market continues to evolve, Wall Street's largest banks are likely to wait for the landscape to mature before committing significant resources.