Global crypto futures volume hits 12-month low as U.S. opens door to regulated perps
Futures volume drops to late-2023 levels
Futures trading in cryptocurrencies slumped to a 12-month low in May even as U.S. regulators approved a key new derivatives product, underscoring a cooling market that is now testing whether regulation can revive activity.
Total futures trading volume across major crypto venues fell to about $2.9 trillion in May, a level last seen in late 2023 and far below the $6 trillion to $7 trillion monthly range recorded during last year’s more active periods.
The decline extends beyond derivatives. Spot trading and on-chain activity also softened as June began, reflecting a broader pullback in speculative positioning. Traders are engaging less aggressively across digital assets, in line with slower momentum seen in other risk-sensitive markets.
Trading remained concentrated on a handful of large venues. Binance kept the dominant share, followed by OKX, Bybit, and Gate. Smaller platforms saw the steepest drops in participation as traders sought deeper liquidity and tighter spreads during a more cautious phase.
Risk appetite fades with price pressure and fund outflows
The slump in futures activity comes alongside signs of declining risk appetite. Bitcoin slipped below the $72,000 mark in early June, while global crypto funds recorded weekly outflows of $1.671 billion.
Sentiment gauges confirm the shift. The Crypto Fear and Greed Index has stayed in the “Fear” zone for two consecutive weeks, suggesting traders are more focused on capital preservation than on leverage or directional bets.
Despite the cooling in derivatives, spot volumes showed some stabilization. Spot trading reached $952 billion in May, halting a three-month slide and hinting that near-term selling pressure could be bottoming out even as leverage comes off the system.
CFTC opens first path for U.S. regulated perpetual futures
Against this backdrop of lower volumes, the Commodity Futures Trading Commission moved to reshape the market structure. On May 29, the CFTC approved the listing of cryptocurrency perpetual futures on regulated U.S. exchanges for the first time.
Perpetual futures, or perps, are derivatives that do not expire, avoiding the need to roll positions and sidestepping calendar-driven volatility. Instead, periodic funding payments between longs and shorts keep contract prices aligned with spot markets, turning funding rates into a continuous signal of leverage and sentiment.
This format, coupled with lower margin requirements and capital efficiency, has made perps the dominant product in global crypto derivatives. They accounted for an estimated $61.7 trillion in trading volume in 2025, largely on offshore platforms operating beyond U.S. regulatory reach.
CFTC chairman Mike Selig said the approval “charts a path” for one of the asset class’s most liquid segments to operate within the U.S. regulatory perimeter. The move is widely seen as the largest expansion of U.S. institutional access to these markets since the approval of spot Bitcoin ETFs.
Coinbase, Kalshi and others prepare to list new contracts
The CFTC’s green light enables entities such as Coinbase and prediction market operator Kalshi to bring perpetual contracts onto fully regulated domestic venues. Products that had lived in a regulatory gray area for U.S. users will now sit under federal oversight.
Analysts argue the framework could pull activity back onshore by offering regulated risk-management tools that appeal to institutions uncomfortable with offshore exchanges and uneven disclosure standards. Selig framed the decision as an effort to repatriate innovation that had migrated overseas and to provide more transparent infrastructure for derivatives trading.
The critical test will be whether U.S. platforms can match offshore rivals on liquidity and cost. Traders will compare funding rates, fee structures and execution quality to determine whether onshore perps can serve as a genuine substitute for established international markets.
CME extends trading hours to match crypto’s 24/7 cycle
In a parallel development, CME Group moved to narrow the gap between traditional derivatives markets and round-the-clock crypto trading. On Friday, May 29, CME launched 24/7 trading for its cryptocurrency futures and options.
The shift to continuous trading saw immediate take-up, with more than 7,200 contracts — around $50 million in notional value — changing hands over the first weekend. The initiative aims to align regulated futures markets more closely with the always-open nature of underlying digital assets, reducing gaps and weekend price risk.
Market watches for liquidity shifts between onshore and offshore venues
With volumes subdued and new rules in place, attention now turns to how capital will flow between the emerging U.S. regulated perps sector and entrenched offshore exchanges.
Traders and market makers will track several key factors in the coming weeks:
- Relative depth of order books, bid-ask spreads, and all-in trading costs on domestic versus offshore platforms
If U.S. venues can build sufficient liquidity and maintain competitive pricing, the approval of perpetual futures could eventually reverse some of May’s volume decline. For now, the market sits at an inflection point, with structural reforms rolling out just as speculative activity retreats to its lowest level in a year.
Want deeper context on perps before trading? Read what are perpetuals and how do they work today.
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