CoinDesk reported that round-the-clock digital asset trading and perpetual futures are weakening the traditional weekend effect, though institutional adoption remains constrained by legacy market infrastructure.
Wall Street’s long-standing habit of cutting risk before Friday’s close is coming under pressure from round-the-clock digital asset trading, as crypto venues create new ways to manage exposure when traditional markets are shut. CoinDesk reported on July 27 that 24-hour digital asset markets and perpetual futures are eroding the traditional “weekend effect,” in which institutions trim positions to avoid being caught by developments while U.S. markets are closed. CME Group Chief Executive Officer Terry Duffy said risk does not adhere to the calendar and that markets are moving toward 24-hour trading. Mustafa Al-Nayema of Mysten Labs said Wall Street investors tend to focus more on reducing weekend risk than on returns by Friday. Crypto-native perpetual futures now trade continuously, and exchanges have also seen activity in perpetual contracts tied to assets such as crude oil and stocks. A recent example came during the war between the U.S. and Iran over a weekend, when investors turned to crude oil futures on Hyperliquid while traditional oil markets were closed, lifting volume sharply on the exchange. Energy Aspects said the rise of 24-hour perpetual futures is allowing investors to respond to oil-price moves on weekends and is reducing Friday volatility in crude, while potentially offering institutions a hedging tool if Wall Street adopts the model. The shift is still constrained at the institutional level. Banks, clearinghouses and other parts of traditional financial infrastructure do not operate on weekends, and Bitget Chief Executive Officer Gracy Chen said retail traders still appear to account for most of the current volume even as institutional interest grows. Duffy said broader participation will remain difficult until the Monday-to-Friday financial infrastructure is extended to weekends.