Following the CFTC's approval of perpetual futures for bitcoin trading on Kalshi, shares of major exchanges have seen sharp declines. CME Group's stock fell over 3% in one day and is down approximately 9% over two days. Cboe Global Markets experienced an 8% drop on Tuesday, contributing to a weekly loss exceeding 17%.
Other exchanges like Intercontinental Exchange and Nasdaq also reported declines of more than 3% and 5%, respectively. Analysts, including Barclays' Ben Budish, express concerns that the introduction of perpetual futures could extend to equity products, potentially displacing existing offerings from CME and Cboe.
While Budish noted that similar products already exist in the U.S. market without significantly altering retail trading behavior, the fear of increased competition remains a driving factor behind the recent stock sell-off