🚨JUST IN: $ASTER PERPETUAL FUTURES TRADING SET TO LAUNCH ON NOVEMBER 26 ON @COINBASE ...

RT Kraken Pro (@krakenpro)🚨 EU Perpetual Futures traders can now use crypto-powered futures on Kraken Pro.Regulated, trusted, and built for capital efficiency.🇪🇺 EU-based Kraken Pro clients can receive $200 in trading fees credit to celebrate the launch.🗓️ Register by December 16, 2025 to qualify.Start trading now: https://t.co/eDs2yCfVs3 ...

RT Kraken Pro (@krakenpro)🚨 EU Perpetual Futures traders can now use crypto-powered futures on Kraken Pro.Regulated, trusted, and built for capital efficiency.🇪🇺 EU-based Kraken Pro clients can receive $200 in trading fees credit to celebrate the launch.🗓️ Register by December 16, 2025 to qualify.Start trading now: https://t.co/eDs2yCfVs3 ...

Core Insights - Brett Harrison, former president of FTX US, is launching a new perpetual futures exchange named Architect, which will not include crypto markets [1][3] - Harrison criticizes leveraged trading on volatile crypto assets as "irresponsible" and highlights concerns about excessive leverage in the crypto market following a significant market crash [2][5] Company Overview - Architect will offer perpetual futures on traditional stocks, foreign exchange markets, and rare metals, while allowing the use of stablecoins as collateral [3] - The exchange will initially be available to institutional investors, with plans to open to retail investors in the near future [3] Industry Context - Perpetual futures are derivative contracts with no expiration, allowing traders to leverage their positions on asset price movements [3][4] - High leverage ratios, such as 100 or 1000 times the initial capital, on volatile markets can lead to significant risks, including account liquidation [5][6]

Core Insights - The largest liquidation event in crypto history occurred, with over $19 billion in positions liquidated within 24 hours, raising concerns about the long-term health of the crypto market due to increased leverage [1] - The popularity of decentralized exchanges like Hyperliquid, which offers high leverage, has intensified competition among exchanges, potentially creating systemic risks [2][5] - The use of leverage in trading, particularly in perpetual futures, significantly amplifies risk, especially during volatile market movements [3] Leverage and Trading Dynamics - Leverage allows traders to use borrowed funds, increasing the risk of forced liquidation during market downturns [3] - Decentralized exchanges like Hyperliquid are offering leverage up to 40x without customer verification, contrasting with centralized exchanges that impose restrictions [4] - The competition among exchanges to offer higher leverage is driving systemic risk, as seen with the emergence of Aster, which offers leverage up to 1,001x on Bitcoin [5] Market Trends - Derivatives trading volume has more than doubled over the past year, with derivatives accounting for 73.7% of trading volume on centralized exchanges compared to spot trading [6]

Core Insights - The SEC Rule 18f-4, adopted five years ago, regulates the use of derivatives in mutual funds and ETFs, requiring a "Derivatives Risk Manager" to calculate Value-at-Risk (VaR) for leverage testing [1][4] - Recent filings by VolatilityShares for 27 new single-stock ETFs with leverage from 3X to 5X indicate a growing trend in the ETF market towards higher leverage products [3][6] - The potential loophole in the rule allows funds to classify cash as derivatives, which could enable them to meet the VaR requirements while maintaining high leverage [5][6] ETF Market Trends - There has been a surge in new 3X ETF filings, with the current wave being distinct from previous attempts at higher leverage products [2][3] - Historical attempts at higher leverage ETFs, such as ForceShares and VelocityShares, faced regulatory challenges and were ultimately shut down [2][3] Regulatory Environment - The current regulatory environment is permissive, with the SEC potentially allowing new filings to go live if not explicitly rejected within 75 days [6][7] - The ongoing government shutdown may impact the SEC's ability to review and respond to these new filings, leading to a lack of oversight [7] Risks and Innovations - The appetite for leveraged products among retail traders remains strong, despite inherent risks such as counterparty risks and hidden financing costs [9][10] - The concept of perpetual futures in the crypto market presents a more efficient alternative to traditional leveraged products, which may influence the future of ETF offerings [10][11]

Group 1 - The cryptocurrency sector experienced a significant flash crash on October 10, triggered by President Trump's threat to increase tariffs on China, leading to a panic that wiped hundreds of billions of dollars off the market cap [1][4] - Bitcoin dropped over 12% from its previous week's peak, while Ethereum saw even larger declines, and meme coins like Dogecoin briefly fell by about 50% [5][6] - The crash was exacerbated by excessive financial leverage in the market, with approximately $19 billion in forced liquidations of leveraged positions reported, marking the largest liquidation event on record [7][8] Group 2 - The initial price shock from the tariff announcement led to a cascade of liquidations as many leveraged positions were simultaneously affected, highlighting vulnerabilities in the financial plumbing of the cryptocurrency market [2][6] - Non-Bitcoin and non-Ethereum assets experienced a 33% drop on average, with some tokens losing up to 99.9% of their value in a very short time frame [6][7]

Market Trends - The current market shows a rebound across the board, with volatility increasing over the past month [1] - The S&P 500 has rebounded approximately 2% after significant one-day drops, marking the best year for the "buy the dip" strategy since 2019 and the second best since the 1980s [2] Retail Investor Behavior - Retail investors are actively participating in the market, with many buying the dip, indicating a lack of nervousness among them [2][3] - A notable increase in market participation is observed among younger investors, with about one-third of 25-year-olds currently invested, up from 6% in 2015 [4] Income Level Participation - Investors from various income levels, particularly those earning between $30,000 and $80,000, are increasingly entering the market, contributing to the current bull market [6] Leverage and Volatility - The use of leveraged trading, particularly in crypto markets, is prevalent, with some traders utilizing up to 100x leverage, which can lead to significant gains or losses [9][11] - The volatility in the stock market may be exacerbated by leveraged trades, as traders often rebalance positions around market close, contributing to extreme price movements [12] Global Market Dynamics - The trading activity is not limited to the U.S., with significant participation from international investors, particularly in leveraged crypto trades, which account for a substantial portion of Bitcoin volumes [13]

Product Offering - Kraken Pro 推出 $2Z 永续期货，最高 20 倍杠杆 [1] - Kraken Pro Futures 提供超过 40 种抵押品选择 [1] - Kraken Pro Futures 提供超过 370 个市场 [1] Platform Features - Kraken Pro Futures 受地理位置限制 [1]

New Product Launch - Kraken Pro 上线 OpenEden (EDEN) 永续期货，最高 20 倍杠杆 [1] Trading Features - 平台提供超过 40 种抵押品选择 [1] - 平台提供超过 370 个交易市场 [1] Risk Warning - 存在地理限制 [1]