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US Crypto Perpetual Futures Are Finally Here — But Most Traders Can Only Touch Bitcoin. Here's Why

(97 days ago) · 1 source · Summarized by CryptoBipto

Perpetual futures contracts have launched for US-based crypto traders, marking a significant regulatory milestone. However, due to liquidity constraints, regulatory limitations, and platform restrictions, Bitcoin may be the only perpetual futures market that's practically usable for the majority of American traders.

WHY IT MATTERS

Think of perpetual futures like a bet on the price of something — say Bitcoin — that never expires. Unlike a regular futures contract that has a set end date, a 'perp' lets you hold your position as long as you want. They're hugely popular globally because they let traders use leverage (borrowing to amplify gains or losses) and profit whether prices go up or down. US traders have been mostly locked out of this market for years because regulators hadn't approved it. Now that perps are launching in the US, it's a big deal — but the catch is that only Bitcoin has enough trading activity to make these contracts work smoothly. For smaller coins, there just aren't enough buyers and sellers yet, which means you could lose money just from the cost of getting in and out of a trade. It's like opening a new stock exchange where only Apple shares have enough volume to trade efficiently.

The arrival of regulated perpetual futures (perps) in the US market is a landmark moment that crypto traders have been waiting years for. Perpetual futures have long been the most popular trading instrument in global crypto markets, but US traders were largely shut out due to regulatory uncertainty, forcing many to use offshore platforms or forgo these products entirely.

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