Perpetual futures
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Coinbase to Boost Global Expansion With Bybit Partnership?
ZACKS· 2026-03-18 17:55
Core Insights - Coinbase Global (COIN) is negotiating a potential $25 billion partnership with Bybit, which would allow Bybit to enter the regulated U.S. market and help Coinbase expand its scale and global reach [1][8] Group 1: Strategic Partnerships and Acquisitions - Partnering with Bybit would enhance Coinbase's focus on high-frequency, higher-margin derivatives, building on its previous acquisition of Deribit for $2.9 billion, positioning Coinbase as a leading global platform for crypto derivatives [2][8] - Coinbase is increasingly pursuing inorganic growth through targeted acquisitions, which broadens its capabilities, diversifies revenue streams, and expands its geographical presence in the digital asset market [3] - The strategic partnerships and acquisitions are diversifying Coinbase's revenue mix, accelerating institutional adoption, and supporting its goal of becoming a comprehensive financial operating system for crypto [4] Group 2: Competitive Landscape - Robinhood Markets (HOOD) is also expanding into crypto derivatives, which enhances its trading activity and diversifies revenues by offering perpetual futures in Europe and micro futures for Bitcoin, Solana, and XRP [5] - Interactive Brokers Group (IBKR) is boosting its platform by providing Bitcoin and Ether futures and options, appealing to both institutional and retail traders, thereby diversifying revenues and capturing long-term growth opportunities [6] Group 3: Financial Performance and Valuation - COIN shares have decreased by 10.8% year to date, although this performance is better than the industry average [7] - COIN currently trades at a price-to-earnings ratio of 66.54, significantly higher than the industry average of 9.85, indicating an expensive valuation [10] - The Zacks Consensus Estimate for COIN's EPS has decreased for the first and second quarters of 2026 by 8.5% and 12.1%, respectively, and for the full years of 2026 and 2027 by 19.8% and 7.1% [11][13]
‘ALWAYS-ON': eToro launches 24/7 gold trading
Youtube· 2026-02-18 01:15
Market Overview - Gold prices have dropped below $5,000, reaching a three-week low at $4,893, despite being up 3% month-to-date, primarily due to a stronger US dollar and weaker Asian demand as the Lunar New Year holiday approaches [1] - Earlier in February, gold experienced a significant increase of $281 per ounce, marking its largest dollar gain on record, closing at $4,903 [1][2] E Toro's Trading Platform - E Toro has launched 24/7 trading for gold, allowing investors to trade the precious metal at any time, which aligns with the company's strategy to tokenize all assets [3] - The platform previously introduced 24/5 trading for popular US equities, enabling users to trade outside regular market hours [4] Company Performance and Strategy - E Toro reported a strong Q4 performance with a 21% increase in stock value and positive earnings, indicating robust trading activity in gold and silver [5][20] - The company is witnessing a shift where crypto traders are increasingly engaging in commodities trading, suggesting a diversification of trading interests among users [6][7] Future Outlook - E Toro aims to evolve into a "super app" catering to the financial needs of a younger audience, with nearly 4 million brokerage accounts and 45 million registered users [12] - The company is focusing on the generational transfer of wealth, projected at $120 trillion, and the ongoing tokenization of assets, positioning itself at the forefront of these trends [16][17] Technological Innovations - E Toro is leveraging AI technology to enhance trading experiences, including the introduction of Tori Tri, an AI analyst that assists users in understanding market dynamics [18] - The platform is also fostering innovation by enabling pro investors to develop applications, with over 1,000 apps in the pipeline [19]
Elk Capital Markets founder explains crypto’s next growth wave
Yahoo Finance· 2026-02-13 03:04
Core Insights - Institutional adoption in cryptocurrency is evolving beyond mere return chasing, indicating a fundamental shift in market dynamics [1] - The current wave of institutional participation is characterized by deeper structural maturation rather than price-driven growth [2][3] Market Dynamics - Previous institutional growth was largely influenced by price surges, but the current cycle reflects a more meaningful liquidity and market size [3] - Traditional finance is adapting to crypto's 24/7 trading model, as evidenced by Nasdaq and the New York Stock Exchange's plans for continuous trading [3] Liquidity and Operational Improvements - The liquidity constraints that previously deterred large funds from entering the market are diminishing, allowing for more significant capital deployment [4] - Operational clarity is improving with clearer regulatory pathways and maturing technology stacks, making trading interfaces more familiar to traditional finance [5] Future Trends - Innovations such as prediction markets and binary options are expected to gain traction, with traditional exchanges revisiting these products [6] - The rise of artificial intelligence is anticipated to create new transaction methods, potentially driving significant technical advancements in the industry [7]
Ondo exec explains how perpetual futures stay in line with spot prices
Yahoo Finance· 2026-02-11 02:16
Core Insights - Perpetual futures, or perps, are unique derivatives that do not expire or settle through the delivery of the underlying asset, raising questions about price stability in relation to spot markets [1] Group 1: Mechanism of Perpetual Futures - Perps are designed to stay aligned with spot prices due to a self-correcting mechanism where traders are incentivized to close any price gaps [2] - Perps are quoted in stablecoins or dollars and can trade independently of spot markets in the short term, with prices responding quickly to trader positioning [3] - When demand is skewed towards buyers, perp prices can exceed spot prices, leading to positive funding rates where long position holders pay fees to short position holders [4] Group 2: Market Dynamics - The funding mechanism creates pressure on both long and short traders, encouraging long traders to close positions due to rising costs and incentivizing short sellers to enter the market [5] - As more traders adopt hedging strategies, selling pressure increases, which helps pull perp prices back toward spot prices [6] - Conversely, if perps trade below spot, the funding mechanism reverses, encouraging long positions and discouraging shorts until prices realign [7] Group 3: Reliability and Market Structure - The funding mechanism acts as a self-correcting system that maintains price alignment without the need for expirations or settlement dates, demonstrating resilience as perp future markets grow [7] - The reliability of this mechanism is a key reason why perps have become integral to the structure of the crypto market [7]
Ondo’s DeFi lead explains why perpetual futures keep growing
Yahoo Finance· 2026-02-06 22:46
Core Insights - Perpetual futures, or perps, are derivatives contracts that allow traders to take leveraged positions on assets without an expiration date, differing from traditional futures which require rolling over contracts [1][2] Group 1: Structure and Appeal of Perpetual Futures - The structure of perps has contributed to their popularity in crypto markets, as they eliminate the need for constant management of expirations while still providing leverage and risk hedging capabilities [2][3] - The appeal of perps is linked to addressing inefficiencies in traditional futures markets, which were originally designed for physical delivery and hedging [3][4] - In traditional futures markets, a significant portion of trading volume is now focused on leveraged exposure rather than physical delivery, leading to operational overhead from rolling positions [5] Group 2: Efficiency and Market Dynamics - Perpetual futures improve market efficiency by trading continuously and aligning with spot markets through a funding mechanism that balances long and short positions [6] - The absence of an expiry date allows traders to maintain exposure without the need for constant contract management, fostering new trading strategies in crypto markets [7] - The demand for long positions in crypto markets can lead to attractive funding rates for traders willing to hedge their spot exposure, making perps valuable for both directional bets and risk management [7]