John Palmer, who heads derivatives at Kraken, anticipates that advanced traders will spearhead the adoption of recently approved U.S. perpetual futures, with wider institutional involvement expected to follow gradually.
By Helene Braun|Edited by Nikhilesh De Jun 13, 2026, 2:00 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Robb Miller/Unsplash)SummaryShow- U.S. regulated perpetual futures, a product long prevalent in offshore crypto markets, are set to launch, with Kraken preparing to offer them on Kraken Pro following its CFTC-regulated acquisitions of NinjaTrader and Bitnomial.
- John Palmer, Kraken's derivatives chief, predicts that sophisticated proprietary traders and retail clients will be the first to engage with U.S. perpetual futures, with larger asset managers and investment advisors joining later.
- Advocates believe that the absence of expiration dates and the more straightforward nature of perpetual futures compared to traditional futures, along with potential use of crypto as collateral, could revolutionize the emerging U.S. crypto derivatives sector and lessen dependence on offshore platforms.
The introduction of regulated perpetual futures in the U.S. could mirror the trajectory seen with spot bitcoin exchange-traded funds (ETFs) in their quest for widespread adoption.
This insight comes from a Kraken executive who oversees the company's global derivatives operations and anticipates that sophisticated traders will be the initial institutional adopters of these newly approved products, while larger asset managers and investment advisors may take longer to engage.
"When I consider the participants in trading, typically the ones who move first are more sophisticated," John Palmer stated in an interview. "They are often already linked to exchanges and trading in a proprietary fashion."
His remarks coincide with the U.S. derivatives market's readiness to welcome regulated "true" perpetual futures, a product that has largely been utilized in offshore crypto trading venues like Hyperliquid (HYPE). Perpetual futures, or perps, enable traders to maintain leveraged positions indefinitely, as opposed to traditional futures contracts, which must be rolled over.
Worldwide, perpetual futures constitute a significant portion of crypto derivatives trading volume, yet U.S. traders have historically faced limited access due to regulatory barriers.
Kraken has recently entered the regulated U.S. derivatives landscape through its acquisitions of NinjaTrader and Bitnomial, allowing it to obtain futures commission merchant, exchange, and clearing licenses regulated by the Commodity Futures Trading Commission (CFTC). The exchange plans to roll out perpetual futures on Kraken Pro in the upcoming weeks.
Palmer indicated that widespread institutional adoption is likely to be gradual, likening it to the rollout of spot bitcoin ETFs in January 2024.
"As we look further up the asset management chain, we encounter investment committees. There might be additional governance requirements depending on the type of entity," he explained. "These factors usually cause them to proceed more cautiously."
He noted that a similar pattern was observed with bitcoin ETFs, where retail and sophisticated customers quickly entered the market, followed by investment advisors and asset managers who needed to navigate their own due diligence and corporate governance processes.
"I believe we will observe a similar trend with perps," he added.
This comparison suggests significant potential changes in the U.S. crypto derivatives market over the next few years. While spot bitcoin ETFs have enabled traditional investors to gain exposure to bitcoin via brokerage accounts, regulated perpetual futures could provide both retail and institutional traders access to one of the most favored trading instruments in the crypto space without the necessity of offshore platforms.
Kalshi, a prediction market platform, recently launched U.S. perpetual futures and announced that it has already surpassed $1 billion in trading volume.
Palmer argued that the success of perpetual futures abroad can be attributed to their straightforwardness. Unlike dated futures, which necessitate managing expirations and contract rolls, perps allow positions to remain open indefinitely.
"It’s a simpler derivative structure compared to the complexities of managing dated futures," he noted. "If I purchase a June [future], it expires, and if I wish to maintain my position, I must roll it over."
Kraken believes that simplifying these processes and eventually permitting the use of crypto assets as collateral could help U.S. traders achieve a trading experience comparable to that found in international markets, Palmer stated.
For the moment, the company views the launch of regulated perps as merely the beginning. Despite the global crypto derivatives market generating trillions of dollars in annual volume, Palmer emphasized that the U.S. market is still in its infancy.
"We’re just at the start of this journey," he remarked. "We’re still at the national anthem stage."
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