Retail investors remain central to Bitcoin’s demand dynamics, even as institutional players deepen exposure through regulated products. In a Cointelegraph interview conducted at BitcoinVegas 2026 and published to YouTube, Swan Bitcoin CEO Cory Klippsten argued that the market’s backbone is still retail-driven, not solely controlled by the big players.

“It’s not like BlackRock owns the Bitcoin and Fidelity owns the Bitcoin. It’s a bunch of retail accounts mostly that actually buy that,” Klippsten said during the conversation, underscoring that real on-chain demand underpins price movements even when ETFs and wrappers provide access. He noted that even buyers via institutional wrappers still have to take real supply and custody it, which implies the demand is genuine and exits supply as bitcoins move from sellers to holders.

Data points surrounding the evolving ETF landscape add nuance to the story. US-based spot Bitcoin ETFs have posted a combined $2.90 billion in net outflows since May 15, according to Farside data, while Bitcoin has fallen about 9.5% over the same period. At the time of publication, Bitcoin was trading around $73,630 per CoinMarketCap. The broader market has also cooled: Bitcoin has declined about 2.87% over the past 30 days, per CoinMarketCap. Amid this backdrop, market sentiment remains fragile, with the Crypto Fear & Greed Index oscillating toward the lower end of the spectrum and signaling cautious positioning among investors.

Klippsten’s reflections on the year intersect with a cautious mood among traders. The interview took place against a backdrop of ongoing volatility in 2026, and the outlook for a fresh Bitcoin all-time high has grown more conservative since Bitcoin traded near $95,000 earlier in the year. He estimated a roughly 50% chance of a new high at that time, but as the price slipped and traded in the 70s, he adjusted the odds downward to about 20–25% for a new high within 2026.

Key takeaways

• Retail demand remains a primary driver of Bitcoin markets, even as institutional products gain traction.
• US spot Bitcoin ETFs have posted about $2.90 billion in net outflows since May 15, according to Farside data, while BTC has fallen roughly 9.5% over the same period.
• Bitcoin’s price hovered near $73,630 at the time of reporting, with a ~2.87% 30-day decline on CoinMarketCap data.
• The Crypto Fear & Greed Index sat in “Extreme Fear” territory, reflecting a cautious market mood in 2026.
• Klippsten’s revised view for 2026 places the odds of a new Bitcoin all-time high at around 20–25%, down from earlier expectations near 50% when prices were higher.

Retail demand vs. ETF access: a persistent tension

The Swan Bitcoin chief framed the narrative as a tension between accessible fiat wrappers and the underlying on-chain reality. While ETFs and futures provide entry points for a broader audience, the actual flow of coins—withdrawn, held, and controlled by investors—drives real supply dynamics. That distinction, he argued, matters for how investors should assess risk and opportunity in a market that remains closely tied to on-chain realities rather than purely paper products.

In this framing, the accessibility of Bitcoin through traditional financial products coexists with the necessity for custody and settlement that characterizes on-chain activity. The result is a market in which paper constructs can widen participation but cannot replace the fundamental mechanics of supply and demand that move Bitcoin’s price.

ETF flows, price action, and the mood of 2026

Farside’s data showing $2.90 billion in net outflows from US spot Bitcoin ETFs since mid-May highlights a critical headwind for ETF-driven narratives. Yet price action suggests a more nuanced picture: BTC has fallen roughly 9.5% over the same window, even as retail and non-traditional buyers continue to transact on-chain. The current price around $73,630 contrasts with the year’s earlier peaks, underscoring the danger of extrapolating from episodic inflows or outflows alone.

Market sentiment has reflected the scramble for direction. The Crypto Fear & Greed Index, a sentiment gauge tracking whether investors are cautiously pessimistic or aggressively optimistic, registered in the Extreme Fear zone on the latest reading, signaling a period of conservative positioning and heightened risk aversion among participants.

Outlook for 2026: a tempered trajectory for a new high

Looking ahead, Klippsten’s view on Bitcoin’s potential to make a new all-time high in 2026 leans toward caution. After seeing Bitcoin retreat from roughly $95,000 earlier in the year, the odds of a fresh high have narrowed. He estimated a roughly 20–25% chance of hitting a new peak within the year, down from a more sanguine 50% when prices were higher. The evolution of ETF flows, macro risk signals, and on-chain metrics will be critical to watch as the year unfolds.

These dynamics come as investors weigh the relative strength of on-chain demand against the noise of regulated access products and evolving market structure. The conversation around retail participation, custody realism, and the path to mass adoption remains central to how market participants interpret price action and risk in the months ahead.

What to watch next

As 2026 progresses, readers should monitor several developments to gauge the balance between on-chain demand and institutional access: incoming and outgoing flows in spot Bitcoin ETFs, shifts in on-chain transaction activity and custody patterns, and quarterly updates on investor sentiment as new data arrives. The ongoing debate over the role of regulated wrappers versus pure on-chain demand will continue to shape how traders position for potential volatility and how builders design services that align with real supply and demand dynamics.

In the near term, attention will likely center on ETF-related activity, price catalysts around macro headlines, and evolving retail participation. Whether retail demand can sustain constructive pressure on supply will be a key variable for readers watching Bitcoin’s longer-term trajectory into the second half of 2026.

The S&P 500’s longest weekly winning streak since 2023 and Brent crude settling near $92 on U.S.-Iran ceasefire hopes have failed to pull bitcoin BTC$73,472.05 and ether (ETH) higher, with the two largest cryptocurrencies finishing the week down nearly 3% as cooling spot bitcoin ETF inflows reinforced the pullback.

The S&P 500 posted its ninth consecutive weekly gain on Friday, the longest such run since 2023 and a streak matched only a handful of times in the past four decades, putting the index up almost 20% from its March lows.

Brent crude settled around $92 a barrel and Treasuries climbed on the week, trimming some of their war-driven losses.

The macro tailwind has come on hopes the U.S. and Iran will sign off on a 60-day ceasefire extension. President Donald Trump said Friday he was ready to make a “final determination” on a preliminary agreement but restated his demand that any deal require Iran to abandon its nuclear program, surrender its enriched uranium and open the Strait of Hormuz.

Crypto did not move with the tape. Bitcoin slipped 2.6% over the past seven days to $73,445, ether 2.5% to $2,011, solana (SOL) 2.2% to $82.42 and TRON’s TRX 5.6%, its worst weekly drop in the top 10, according to CoinDesk data.

DOGE$0.1009 finished roughly flat. The slide came alongside softer spot bitcoin ETF inflows, which was flagged this week as adding to the downward pressure even as macro conditions improved.

The exception was the smaller side of the leaderboard. Hyperliquid’s HYPE token ripped 19.4% on the week to $65 as sentiment for the asset continues to grow. Intercontinental Exchange chief Jeffrey Sprecher praised the decentralized perpetuals venue at a Bernstein conference and calling it “bigger than NASDAQ.” BNB closed up 1.9% and XRP eked out a 0.7% weekly gain.

The Iran deal still needs Trump’s signature, and the red lines he restated on Friday sit well beyond what Iran has indicated it would accept publicly. The macro rally is one bad headline from reversing.

A venture capitalist who has spent a decade backing deep-tech and quantum hardware startups says the bitcoin BTC$73,451.76 industry is fixated on the wrong half of the quantum problem, the wallet keys instead of the encrypted messages already moving between exchanges, bridges and custodians today.

“The financial system’s most dangerous vulnerability isn’t stored data, it’s the data
moving between institutions right now,” Andrew Gault, CEO of networking firm ZeroTier, told CoinDesk in a recent chat.

“Every interbank message, every payment authentication record, and every digital signature traveling across a network today is being collected by sophisticated adversaries who don’t need to read it yet,” he noted.

“CISOs and security teams have been trained to protect data at rest. What nobody wants to say out loud is that the adversary’s strategy has changed. They’re patient, they have storage, and they’re building a library of today’s encrypted traffic to decrypt the moment quantum capability crosses the threshold,” he added.

Gault is CEO of networking firm ZeroTier and a founding partner of 7percent Ventures, a London- and San Francisco-based deep-tech firm whose portfolio includes British quantum-computing startup Universal Quantum.

The Google Quantum AI research that rattled bitcoin in March showed a sufficiently powerful quantum computer could derive a bitcoin private key from an exposed public key in about nine minutes, came from outside his portfolio.

The conversation since that paper has centered on the roughly 6.9 million BTC sitting in addresses with exposed public keys and Bitcoin’s missing post-quantum migration plan.

But Gault says the more urgent exposure is the data already being collected off the open internet for decryption later, regardless of whether a working quantum computer exists yet.

Google’s own security engineers have moved the same direction. In a March post, the company set 2029 as its target for completing a post-quantum cryptography migration, citing progress on quantum hardware, error correction and factoring resource estimates.

The post, written by Google vice president of security engineering Heather Adkins and senior cryptography engineer Sophie Schmieg, said the company has reprioritized its internal threat model to focus on authentication services and digital signatures, the same wire-level signing infrastructure Gault has been pointing at.

“The threat to encryption is relevant today with store-now-decrypt-later attacks,” the post said.

The strategy driving that urgency is known in cryptography circles as “harvest now, decrypt later.” It assumes adversaries don’t need to read encrypted traffic today, only store it cheaply until a sufficiently powerful quantum computer arrives.

Citi modeled the bank-system version of the scenario in February, estimating a quantum-enabled attack on a single top-five U.S. bank’s access to the Fedwire Funds Service payment system could trigger a $2 trillion to $3.3 trillion cascade across the U.S. economy, equal to a 10% to 17% decline in real GDP.

The Global Risk Institute, cited in the same Citi report, puts the probability of a cryptographically relevant quantum computer arriving by 2034 at between 19% and 34%.

For crypto, the wire-level surface is broader than the wallet one. Cross-chain bridge proofs, exchange API authentication packets, signed transactions broadcast and archived in public mempools, and the back-channel signing traffic between cold storage and trading desks all sit on the same vulnerability spectrum as the bank-grade encryption Citi was modeling.

CoinShares argued in a February report that the wallet-key fear is overstated, estimating only about 10,200 BTC are concentrated enough to move markets if stolen.

Gault’s worry is a different one. “The particularly uncomfortable reality for financial institutions is that the authentication records being harvested aren’t just sensitive,” he said. “It’s the proof layer that determines who owns what, who authorized which transaction, and who bears legal liability.”

Ethereum (ETH) has launched a coordinated post-quantum migration, but Bitcoin has not done the same. Major crypto exchanges and custodians, where most of the signing traffic lives, have not publicly committed to one either.

TLDR:

• FBI crypto seizure crackdown marks one of the largest crypto forfeitures in US history.
• Authorities tied 127,000 bitcoin seizure to Prince Holding Group CEO Chen Zhi fraud network.
• Operation Blackout dismantled scam compounds across Asia and freed nearly 2,000 trafficked workers.
• IC3 reported 72,000 crypto fraud complaints in 2025 with losses exceeding $7.5 billion total.

The FBI has seized roughly $8 billion in cryptocurrency in a sweeping international crackdown on scam compounds.

Authorities also arrested hundreds of suspects tied to coordinated fraud and money laundering networks. The operation stretched across Asia, the Middle East, and parts of Africa, targeting organized criminal infrastructure. 

Officials linked the case to one of the largest crypto forfeitures in U.S. enforcement history.

FBI Crypto Seizure Crackdown Targets $8B Scam Compound Networks

The FBI crypto seizure crackdown centered on more than 127,000 bitcoin tied to Chen Zhi, according to Fox News reporting. The assets pushed total recovered crypto to over $8 billion at the time of seizure. 

Valuations may have exceeded $15 billion during earlier market peaks. Officials described the action as a historic asset recovery milestone.

Chen Zhi leads Cambodia-based Prince Holding Group, which authorities accuse of running large-scale fraud operations. Federal charges include wire fraud and conspiracy to launder money. 

Investigators allege the network operated guarded compounds targeting global online scam victims. Law enforcement continues expanding related financial probes.

Authorities also linked the Democratic Karen Benevolent Army to scam compound activity in Myanmar. The armed group operates in conflict regions and faces U.S. sanctions for prior fraud involvement. 

Officials classify it as a transnational criminal organization tied to cyber-enabled theft. Investigators flagged its links to broader Chinese organized crime networks.

The seizure forms part of a wider enforcement push against coordinated crypto-enabled fraud systems. Agencies said these networks combine digital scams with forced labor operations. 

Multiple jurisdictions supported asset tracing and crypto wallet identification efforts. The scale of recovered funds highlights the industrial nature of the fraud economy.

Operation Blackout Exposes Global Crypto Fraud and Trafficking Pipelines

Operation Blackout coordinated multiple enforcement actions, including Zephyr Exodus, Sand Dollar, and Haochen. These operations targeted scam compounds operating across Asia and the Middle East. 

Authorities seized additional crypto assets and dismantled recruitment pipelines used by criminal groups. Officials said the campaign disrupted cross-border fraud infrastructure.

The FBI reported freeing nearly 2,000 trafficked workers during coordinated raids on scam facilities. Victims were often recruited under false job promises and then forced into scam operations. 

The Internet Crime Complaint Center recorded about 72,000 fraud complaints in 2025. Reported losses exceeded $7.5 billion, with officials warning of underreporting.

Investigators partnered with Starlink to track terminals used in scam compound communications. The cooperation led to the suspension of more than 7,000 terminals in Myanmar. 

Authorities said criminal groups used satellite links to evade traditional monitoring systems. The disruption weakened multiple active fraud hubs across the region.

Operation Level Up focused on victim identification and fraud prevention across crypto investment schemes. The FBI notified about 8,935 victims who were unknowingly exposed to scams. 

Officials estimated the intervention prevented roughly $562 million in losses. The program aims to reduce exposure to high-volume crypto fraud networks.

Despite the growing institutional presence in crypto, retail sentiment is just as important as it was when Wall Street was largely on the sidelines, according to Swan Bitcoin CEO Cory Klippsten.

“It still does. You have to remember it’s not like BlackRock owns the Bitcoin and Fidelity owns the Bitcoin. It’s a bunch of retail accounts mostly that actually buy that,” Klippsten said during an interview with Cointelegraph published to YouTube on Tuesday.

Cory Klippsten spoke to Cointelegraph at BitcoinVegas 2026. Source: Cointelegraph

“You know they’re buying it in a wrapper. But they still have to take real supply and custody it. And it comes out of the supply. So, you know, it’s still it is real demand in ETFs,” Klippsten said, adding:

“There are some paper products and futures and things like that that are weird and take a little while to kind of work through the system. There is something to the idea that there is more supply in certain ways. But at the end of the day, if you want real on-chain Bitcoin, the fact that you can get it is what makes Bitcoin unique.”

US-based spot Bitcoin ETFs have posted a combined $2.90 billion in net outflows since May 15, according to Farside data, while Bitcoin has slid approximately 9.5% over the same period. At the time of publication, Bitcoin is trading at $73,630, according to CoinMarketCap.

Bitcoin is down 2.87% over the past 30 days. (CoinMarketCap)

Meanwhile, sentiment toward the crypto market has been volatile in 2026. The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an “Extreme Fear” score of 23 on Friday, signaling that investors are taking a cautious approach to the crypto market.

Bitcoin price outlook for 2026: slim chances

Klippsten said his outlook on Bitcoin hitting a new all-time high in 2026 is now looking slim. 

Related: Bitcoin falls out of the global top 10 assets as market cap dips below $1.5T

He said he thought there was around a 50% chance we’d see a new all-time high this year when Bitcoin was still trading around $95,000 earlier this year, but given it has declined around 23% since then, his odds have gone down.

“I thought there was probably like a 50% chance that we’d see a new all-time high this year. And I’d say, given that we’re still in the 70s and, you know, and that we went all the way down to 60, I’d probably handicap that down to like 20 or 25% chance that we get a new [high]” he said.

Magazine: ETH bears growling, Tom Lee’s buying, XRP to ‘explode’: Market Moves

TLDR:

• Cash App Investing selected Apex Clearing after an extensive evaluation to support its next phase of growth.
• Apex’s AscendOS™ platform offers real-time processing, 24×5 trading, and multi-asset class support for users.
• Existing Cash App features like dividend reinvesting and Round Ups remain fully intact under the new partnership.
• The API-first infrastructure gives Cash App the flexibility to roll out new investment products at a faster pace.

Cash App Investing has selected Apex Clearing Corporation as its new clearing provider, marking a key move in its growth strategy. The partnership combines Cash App’s user-focused investing tools with Apex’s AscendOS™ technology platform.

Cash App Investing serves millions of customers through Block, Inc.’s Cash App, which reports more than 59 million monthly transacting actives. The alliance is designed to support continued scaling and product innovation for everyday investors.

A Technology-Driven Alliance Built for Growth

Apex was chosen following an extensive evaluation process by Cash App Investing. The decision reflects a clear need for real-time, scalable infrastructure.

Apex’s AscendOS™ platform is built specifically for modern digital investing environments. It supports high-volume, concurrent user activity without sacrificing compliance or security.

Cash App Investing customers will continue using the familiar Cash App interface throughout the transition. The partnership preserves existing features such as dividend reinvesting and the Round Ups tool.

Apex’s infrastructure adds robust security protocols to the experience. These systems are designed to handle real-time processing at significant scale.

Apex CEO Bill Capuzzi spoke directly to the reliability element of the deal. “Real-time technology, reliability that earns trust, and a partner built to support their momentum,” he said.

He added that Cash App has built something remarkable for everyday investors. In his view, the collaboration positions Cash App to continue scaling its platform and user base.

The technology stack also opens access to multiple asset classes for future product development. This broadens the potential roadmap for Cash App Investing going forward.

Both firms went through an extensive evaluation before finalizing the arrangement. The outcome reflects a shared focus on infrastructure that can grow with user demand.

Expanding Capabilities Through AscendOS™

Logan Kolar, CEO of Cash App Investing, pointed to the API-first design as a decisive factor. “Apex’s real-time infrastructure and API-first approach give us the flexibility to innovate quickly,” he stated.

He added that the platform ensures customers receive the reliability and protection they expect. The alignment in mission—making investing more accessible—drove the strategic fit between both firms.

AscendOS™ brings capabilities that extend well beyond standard clearing functions. The platform supports a variety of account types alongside multiple asset classes.

It also enables 24×5 trading, which is increasingly expected in digital investing environments. These features allow Cash App to expand its offerings without building infrastructure from scratch.

The API-first architecture supports rapid feature development cycles across the board. Cash App can roll out new tools without long delays in the development process.

The system also maintains regulatory compliance throughout that process. Speed and security are built to work together rather than compete.

For everyday investors using Cash App, surface-level changes will remain minimal. The core benefit lies in the infrastructure supporting their accounts behind the scenes.

Improved reliability, faster processing, and a wider future product range are the expected outcomes. The partnership sets the stage for what both companies describe as the next chapter of growth.

TLDR:

• SEC Chair Paul Atkins said he expects the CLARITY Act to pass Congress and become law.
• The bill aims to establish clear rules separating digital commodities from securities.
• Senate Banking Committee approval has moved the CLARITY Act closer to a full vote.
• The framework seeks to keep crypto innovation and investment activity within the United States.

SEC Chair Paul Atkins has expressed confidence that the CLARITY Act will clear Congress and receive President Donald Trump’s signature.

His remarks arrive as crypto market structure legislation gains momentum in Washington, bringing the United States closer to establishing a comprehensive framework for digital assets.

SEC Chair Paul Atkins Sees CLARITY Act Becoming Law

SEC Chair Paul Atkins delivered a strong vote of confidence for the CLARITY Act during a recent interview, signaling growing optimism around crypto legislation in the United States.

According to Atkins, Congress is expected to approve the measure, allowing President Trump to sign it into law and provide a formal legal foundation for digital asset oversight.

Atkins emphasized that regulatory uncertainty has remained one of the largest obstacles facing the crypto industry.

He explained that businesses often struggle to determine which regulations apply to their products, creating unnecessary costs and delays. Without clear rules, many firms have chosen to develop and launch services outside the United States.

The SEC Chair stated that the CLARITY Act would help resolve those concerns by establishing a statutory framework for digital assets.

He noted that regulatory certainty would allow innovators to operate domestically while giving investors greater confidence in the market.

His comments come as the Senate Banking Committee advances the legislation toward a full Senate vote. The bill’s progress marks one of the most important developments for crypto regulation in recent years and reflects increasing support for a structured approach to digital asset oversight.

CLARITY Act Aims to Define Crypto Rules and Strengthen US Leadership

A central objective of the CLARITY Act is to create clear distinctions between digital commodities and securities. The legislation is designed to reduce overlap between the SEC and the Commodity Futures Trading Commission, providing market participants with a more predictable regulatory environment.

Treasury Secretary Scott Bessent has also backed efforts to move the bill forward. Supporters argue that the framework would help prevent conflicting interpretations from federal regulators while encouraging blockchain innovation within the United States.

Atkins maintained that America already holds a leading position in global crypto markets but warned that maintaining that advantage requires clear and consistent regulation. He said previous uncertainty pushed innovation offshore and limited opportunities for domestic growth.

The CLARITY Act aligns with President Trump’s broader goal of making the United States a global center for digital asset development.

While additional legislative hurdles remain, the bill’s recent progress has increased expectations that comprehensive crypto market structure reform could soon become a reality.

For the crypto industry, the coming Senate vote now represents one of the most closely watched developments in Washington as lawmakers move toward establishing long-term rules for the digital asset economy.

Coinbase Financial Markets has begun offering US institutional clients access to global crypto options and perpetual futures through a regulated futures commission merchant, including connectivity to Deribit’s crypto options platform.

Coinbase said the launch follows guidance from the Commodity Futures Trading Commission that allows a regulated futures commission merchant to connect US clients with global crypto derivatives liquidity. The company stressed that Coinbase Financial Markets is the first CFTC-regulated FCM to provide such access.

Deribit, which Coinbase acquired in August 2025 as part of its expansion into crypto derivatives, is the largest crypto options exchange by open interest. CoinGlass data shows Deribit held roughly $31 billion in Bitcoin options open interest on May 27, compared with about $2.7 billion on OKX, $1.8 billion on Binance and $1.2 billion on Bybit.

According to Friday’s announcement, institutional clients can begin onboarding immediately, while broader access, including retail, is expected to follow later.

Key takeaways

• Coinbase becomes the first CFTC-regulated futures commission merchant to connect US institutional clients to global crypto options and perpetual futures liquidity via Deribit.
• Deribit dominates Bitcoin options open interest, with roughly $31 billion in BTC options as of late May, highlighting liquidity concentration on a single platform.
• US derivatives venues are expanding crypto offerings as regulators signal a path to onshore perpetual futures and new regulated products, including CME’s crypto index futures and Bitcoin Volatility futures, while exchanges such as Kraken pursue expansion through Bitnomial.
• The regulatory backdrop features ongoing moves by US agencies toward onshoring certain crypto derivatives, including a September 2025 joint SEC/CFTC statement and accompanying guidance on 24/7 trading and clearing.

US-regulated access deepens crypto derivatives usage

The Coinbase arrangement leverages an onshore path for US institutions seeking exposure to a broader derivatives liquidity pool beyond domestic venues. By connecting US clients to Deribit through a regulated FCM, Coinbase aims to offer regulated access to a dominant offshore options market, aligning with a broader push to reconcile offshore liquidity with US supervision.

Institutional onboarding is available immediately, with a plan to roll out broader access, including retail participation, at a later stage. The move reflects a growing appetite among large traders for regulated pathways to global crypto derivatives, alongside continued regulatory scrutiny of products and venues offering such exposure.

Deribit’s liquidity position reinforces market dynamics

Deribit’s leadership in BTC options open interest underscores a liquidity concentration that has persisted in crypto derivatives. With roughly $31 billion in Bitcoin options open interest as of May 27, it stacks up against peer venues and shapes the depth of liquidity for complex strategies like spreads, hedges, and volatility plays. The data points cited by CoinGlass show OKX at about $2.7 billion, Binance at $1.8 billion, and Bybit at $1.2 billion in BTC options open interest at the same snapshot.

The partnership with Coinbase could bolster Deribit’s role as a preferred onramp for US institutions seeking regulated access to offshore liquidity pools, potentially affecting spreads, dynamic hedging costs, and the availability of sophisticated options structures for large players.

Regulatory momentum and market diversification

The launch arrives amid a broader regulatory discourse about bringing crypto derivatives onshore. In a joint statement published in September 2025, the US Securities and Exchange Commission and the CFTC signaled they would explore ways to bring perpetual futures trading onshore, noting that such contracts have largely remained offshore due to regulatory and jurisdictional constraints. The agencies said they could consider steps to “onshore perpetual contracts” and bring activity currently flowing to foreign platforms back to regulated US markets.

In parallel, US derivatives venues have been expanding their crypto offerings. CME Group has announced plans to launch a crypto index futures contract tracking a basket of seven cryptocurrencies, including Bitcoin, Ether, Solana and XRP. Days later, CME unveiled Bitcoin Volatility futures, a regulated product that will settle to a 30-day measure of expected Bitcoin volatility derived from CME options markets.

Other US players are pursuing similar growth trajectories. Kraken’s parent Payward completed its acquisition of Bitnomial, a CFTC-regulated derivatives platform that earlier this year launched the first US-regulated futures contracts tied to Injective’s INJ token, following a prior launch for Aptos earlier in the year.

Additionally, CFTC staff published guidance on 24/7 trading, clearing and settlement for crypto asset derivatives, arguing that such markets may be particularly well suited to round-the-clock activity.

Investors and practitioners should watch how onboarding evolves for retail participants, how liquidity shifts between onshore and offshore venues, and what regulatory clarifications emerge as US authorities continue to shape the trajectory of crypto derivatives in a regulated framework.

Jeffrey Sprecher, chief executive officer of Intercontinental Exchange (ICE), has said the company wants equal regulatory treatment as it evaluates opportunities in the fast-growing market for onchain perpetual futures.

Speaking at a Bernstein conference on May 27, Intercontinental Exchange CEO Jeffrey Sprecher said the company has been discussing blockchain-based perpetual futures with regulators while also holding multiple meetings with the Hyperliquid team to better understand the fast-growing sector.

Sprecher’s comments come weeks after Bloomberg reported that ICE and CME Group had spoken with Capitol Hill officials about potential risks tied to Hyperliquid’s markets, particularly those connected to global oil trading. 

According to Sprecher, those discussions were not an effort to target Hyperliquid but part of ICE’s effort to determine whether existing regulations would permit similar products.

“What we are saying to the regulators is, ‘Can we do that?’ Why are you prohibiting us from doing this when it’s already happening? And can’t we have a level playing field?” – Jeffrey Sprecher.

Rather than treating onchain platforms as competitors to be challenged, ICE has been engaging directly with them, according to Sprecher. He said the exchange operator has been learning how decentralized perpetual markets function while helping crypto native firms understand traditional derivatives markets.

“We’re not freaked out about it. We’re actually talking to these people and learning about it.”

ICE explores onchain commodities trading

Interest from ICE comes as blockchain-based perpetual futures attract growing volumes from traders looking for uninterrupted access to markets.

Earlier this month, JPMorgan analysts noted that Hyperliquid had seen rising activity from non-crypto participants using its 24-hour markets to trade oil exposure outside traditional exchange hours. 

Sprecher said recent geopolitical tensions in the Middle East have drawn additional attention to weekend trading activity because major developments often occur when conventional markets are closed.

At the same time, ICE has been building ties with crypto firms that already operate in the sector. Last week, the company announced plans with OKX to launch oil perpetual contracts linked to ICE Brent Crude and WTI Crude benchmarks.

ICE has also invested in OKX at a $25 billion valuation and secured a seat on the company’s board. ICE has also backed prediction market platform Polymarket, including a $600 million investment announced in March.

Regulators face questions over market structure

Sprecher added that regulators will eventually need to decide how blockchain-based perpetual futures fit within existing financial rules.

According to Sprecher, policymakers could establish a dedicated framework for perpetual futures or classify them under existing swaps regulations such as the Dodd-Frank Act in the U.S. and EMIR rules in Europe.

Hyperliquid Policy Center, a U.S. advocacy group supporting the protocol, has argued that continuous trading improves market efficiency by removing interruptions between traditional trading sessions and allowing price discovery to occur around the clock.

Another area drawing attention involves private market trading on blockchain platforms. Sprecher pointed to the expected June 11 SpaceX IPO as a real-world test of whether prices discovered through onchain markets influence public listings.

According to Sprecher, the expected June 11 public listing of SpaceX could provide insight into whether prices discovered in onchain markets influence traditional IPO valuations.