In a recent announcement, Galaxy Digital”s CEO, Mike Novogratz, who has a history as an early investor in Bitcoin, pointed to perpetual futures, or “perp equities,” as a promising trend in the cryptocurrency sector. He stated that “crypto loves leverage,” highlighting the growing interest in these financial instruments.
Perpetual Futures (PERPs) are unique in that they enable continuous trading without an expiration date. They utilize funding rates to ensure alignment with spot market prices while offering leverage that can reach up to 500x. Several decentralized exchanges have already begun to provide perpetual futures on U.S. stocks, featuring leverage options of up to 50x, which have captured the market”s attention.
Notably, the launch of Hyperliquid”s equity perpetuals saw nearly $100 million in trading volume within the first 24 hours, indicating a robust demand for leverage in modern trading environments. These equity perps are revolutionizing the traditional equities market by creating a fully on-chain trading ecosystem available around the clock.
Analysts suggest that global equity perps could emerge as one of the most significant growth opportunities in the cryptocurrency space over the next 12 to 18 months, potentially surpassing the growth of stablecoins. As trading activity develops to follow the sun, perpetual futures linked to prominent equities are expected to gain further traction.
However, the high leverage and continuous nature of these products may also contribute to increased volatility across both derivative and spot markets. This volatility could present both challenges and opportunities for traders.
Galaxy Digital”s recent listing on the Nasdaq marks a pivotal moment for the firm, which has also been investing in artificial intelligence data center infrastructure. Novogratz remarked, “I think we”re at the beginning of the race, not the end of the race,” emphasizing his belief in the growth potential of both the cryptocurrency and AI sectors.
With Galaxy”s future now tied to these two rapidly expanding areas, Novogratz”s insights on perpetual futures could signal a transformative shift in how equity trading is approached within the crypto landscape.
