Ethena Announces Plans to Enter Stock Perpetual Futures Market

Ethena has announced its intention to expand its arbitrage strategy from the cryptocurrency market into the stock perpetual futures market. On the 28th, Ethena explained on its official X account that the combination of spot holdings and short positions in perpetual futures is the core of its strategy, stating that the funding rate paid by long positions to short positions in the perpetual futures market serves as a source of revenue. Ethena mentioned that the scale of cryptocurrency arbitrage distribution has exceeded $8 billion at its historical peak and claimed that the potential open interest in the stock perpetual futures market could reach approximately $4 trillion. Currently, the open interest in stock perpetual futures stands at $6.2 billion, indicating it is still in its early stages. From May 20 to August 11, the annualized average funding rates for stock perpetual futures on Hyperliquid and Binance were 14% and 17.5%, respectively, while the funding rate for Bitcoin was 4.1%. Ethena analyzed that the funding rate premium for stock perpetual futures has little correlation with cryptocurrency funding rates and stated that the expansion of the stock perpetual futures market could broaden the operational scope of existing cryptocurrency collateral and short positions. Ethena plans to leverage existing hedge execution and over-the-counter settlements to expand its strategy into the stock perpetual futures market.

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