Arthur Hayes: Price discovery for the largest U.S. tech stocks and major stock indices is expected to occur in the perpetual contract market.

PANews reported on November 28th that BitMEX co-founder Arthur Hayes published an article titled "Survival of the Fittest: How Perpetual Contracts Are Disrupting the Traditional Financial Landscape." The article points out that traditional finance (TradFi) is desperately trying to maintain its dominance in stock trading. It will be very interesting to observe how they respond to the rapid market acceptance of stock index perpetual contracts. The first perpetual contract sector to dominate the market will be offshore trading of US stock price risk. US stocks, and all stocks, will eventually be tokenized. However, stock index perpetual contracts do not rely on stock tokenization to succeed. Stock perpetual contracts already have mature infrastructure that allows for rapid scaling. Currently, daily trading volume for stock index perpetual contracts exceeds $100 million. As traders and market makers become familiar with the contract specifications, trading volume will soon reach billions of dollars daily. Considering the frequent sudden global announcements after the TradeFi market closes on Fridays, stock index perpetual contracts will become a tool for institutional and retail traders to hedge risk over the weekend. This will force major US securities trading platforms to achieve 24/7 trading faster than originally planned.

It predicts that by the end of 2026, price discovery for the largest US tech stocks and major stock indices (such as the S&P 500 and Nasdaq 100) will occur in the perpetual contract market, which is geared towards retail investors. The market landscape will significantly change when financial media prioritizes S&P 500 perpetual contract quotes over the CME's Globex version. Furthermore, it states that the next wave of cryptocurrency exchange billionaires will emerge from the intersection of perpetual contracts and stocks.