Trump's Push for Perps: A New Era in Futures Trading?
At a recent White House event, former US President Donald Trump praised regulators for their efforts to bring Hyperliquid, an online exchange based in Singapore, to the US. The exchange specializes in perpetual futures contracts, also known as perps, which allow investors to buy or sell assets with no expiration date and massive borrowing potential.
The co-founder of BitMex, Arthur Hayes, credits his company with inventing the perp and describes it as 'a better product, period.' Perpetual futures have become popular in cryptocurrency investing but are now being considered for other asset classes, including gold, crude oil, and shares in US companies.
Trump's administration has been seen as pro-crypto, with several digital currencies bearing his name and family members heavily invested in the space. However, it is unclear what implications the introduction of perps to traditional markets could have on investor behavior or market stability.