Shares of major exchange operators are under pressure following the Commodity Futures Trading Commission's (CFTC) approval of perpetual futures for bitcoin.
The move has raised concerns among investors that the traditional Wall Street exchanges could face a wave of new trading products, potentially disrupting their long-standing dominance.
CME Group and CBOE Holdings, two of the largest derivatives exchanges in the U.S., have seen their stock prices decline in response to the regulatory development.
The approval of perpetual futures, which allow for extended trading without an expiration date, is seen as a significant step in the evolution of cryptocurrency markets and could attract a broader range of institutional and retail investors.
The regulatory shift aligns with a growing trend of financial institutions and regulators embracing digital assets.
However, it also signals a potential shift in market structure, as new products could fragment trading activity away from traditional exchanges.