Perpetual futures, a crypto-powered trade, expand across markets

Perpetual futures, a type of derivative contract that allows investors to bet on an asset's price without owning it directly, are gaining traction and are being considered for expansion into traditional markets. Unlike standard futures contracts, perps do not have an expiration date and can be held indefinitely as long as margin requirements are met. Their price is maintained in line with the underlying asset through periodic funding payments between buyers and sellers, a simplicity that has contributed to their popularity.

Originally launched by offshore exchange platform BitMEX in 2016 as a way for traders to speculate on bitcoin, interest in perpetual futures has surged. In May, the 24/7 trading platform Trade [XYZ] secured exclusive permission from S&P Dow Jones Indices to offer trading of perps referencing the S&P 500 on the Singapore-based exchange Hyperliquid. Coinbase introduced "perpetual-style futures" in July 2025, and Robinhood launched a similar feature in September. The prediction platform Kalshi also offers perps for certain assets.

Perps trading has seen significant growth internationally, with Hyperliquid dominating the market. The platform's native cryptocurrency tripled in price in 2026 amid expectations of expanded perp offerings to more markets. In August, President Donald Trump indicated the possibility of the Commodity Futures Trading Commission bringing Hyperliquid to the U.S., which could significantly broaden onshore trading options and increase the variety of perp assets, including single stocks and commodities.

Market participants like Mark Hiriart and Jordan Knecht suggest that perps offer event-driven macro traders an opportunity to capitalize on unexpected headlines, even outside of regular trading hours. Hiriart cited a surge in activity for oil-referencing perpetual contracts on Hyperliquid during the Iran conflict, highlighting demand for round-the-clock access to macro assets. He also noted that perps often serve as a venue for price discovery, influencing even those who hold the underlying asset.

However, some market professionals urge caution. Benjamin Sarquis Peillard, CEO of Cap, emphasized that the mechanics making perps attractive also make them risky, particularly when applied to markets like oil, gold, or equities, which have different liquidity dynamics. Hiriart echoed concerns about leverage, noting that the ability to take on enormous leverage is a key reason U.S. and other regulators have been hesitant to approve such contracts for broader use. He advised that these are leveraged instruments not suitable for everyone and require appropriate handling, suggesting the broader trend towards always-on trading and institutional-grade infrastructure in digital assets is the more significant takeaway for most investors.