JPMorgan: Institutional Demand for Perpetual Swaps Limited, More Used for Speculative Trading

BlockBeats News, June 29th, JPMorgan Chase stated that, based on its conversations with clients and market participants, institutional demand for perpetual futures remains limited. Such products are more often seen as speculative trading tools rather than alternatives to traditional derivatives. The report noted that although perpetual futures support 7x24 trading and eliminate the cost of rolling futures contracts, the majority of trading comes from traders seeking leveraged directional exposure rather than institutions with genuine hedging needs.

Furthermore, the report suggests that factors such as basis risk, lack of term structure, inadequate physical delivery, and the lack of traditional clearing guarantees in on-chain products have all hindered institutional adoption. (CoinDesk)