Shares of major exchange operators are sharply declining following the CFTC’s recent approval of perpetual futures for Bitcoin, raising concerns that new trading products could threaten Wall Street’s dominance.
CME Group, a leading derivatives and futures platform, fell over 3% on Tuesday and is down approximately 9% over the past two days, heading for its biggest weekly loss since 2020. Cboe Global Markets dropped 8%, bringing its weekly decline to over 16%, also its largest since 2020.
Meanwhile, Intercontinental Exchange (NYSE parent) declined more than 3% on Tuesday and is down 5% for the week, while Nasdaq shares tumbled over 6%, marking a red week.
The CFTC’s approval last week for perpetual futures contracts without expiration dates for Bitcoin has sparked investor concern that similar products could soon be available for other asset classes.
Such developments may intensify competition for traditional exchanges that have long held dominance on Wall Street.
Source (CNBC)
