Institutional Investors Enter the Crypto Asset Space: Why Perpetual Futures Contracts Are the New Favorite

As the mechanism of the cryptocurrency market becomes increasingly sophisticated, institutional demand for derivative tools continues to rise. Recently, it was reported that a trading platform will officially launch Bitcoin and Ethereum perpetual futures contracts on November 24th. This move reflects the accelerating pace of traditional financial institutions entering the space.

**Why Perpetual Futures Are Doubling in Attractiveness for Institutional Investors**

Compared to spot trading, perpetual futures contracts offer more flexible risk management tools. The newly launched products will adopt USDT settlement mechanisms, meaning investors do not need to frequently exchange fiat currency and can manage their positions directly within the stablecoin ecosystem. Especially designed for qualified institutional investors, this reduces entry barriers and makes it easier for institutional funds to participate in the crypto derivatives market.

**Advantages of 24/7 Continuous Trading and Dynamic Fee Mechanisms**

Around-the-clock trading hours are difficult for traditional financial products to provide. The floating funding rate design of perpetual futures can adjust dynamically based on market supply and demand, making it more fair and transparent compared to fixed rates. This is of significant value for institutions seeking refined trading strategies.

**Implications of Institutional Entry for Market Liquidity**

When institutional investors begin to use derivatives tools on a large scale, it often signals that the market is entering a more mature development stage. The launch of new contract products will further enrich the trading depth of Bitcoin and Ethereum, bringing a healthier liquidity environment to the entire ecosystem.