Bybit Expands US Equity Perpetuals with INFQ, SPXL, MSTU — A New Bridge Between Crypto and Wall Street
TREE NEWS reports: News Summary: On August 26, Bybit listed three new US equity perpetual contracts: Infleqtion (INFQUSDT), Direxion Daily S&P 500 Bull 3X ETF (SPXLUSDT), and T-Rex 2X Long MSTR Daily Target ETF (MSTUUSDT). These products support up to 25x leverage and come with limited-time fee promotions: 0% for limit orders and 50% discount for market orders.
Industry Analysis
Bybit’s move is a significant step in the convergence of traditional finance (TradFi) and crypto derivatives. By offering tokenized exposure to US equities and leveraged ETFs, Bybit is tapping into a growing demand from crypto-native traders who want to speculate on traditional assets without leaving their preferred exchange. The inclusion of MSTU — a 2x leveraged MicroStrategy ETF — is particularly notable, as it directly links crypto sentiment (via MSTR’s Bitcoin holdings) with equity trading. This product effectively allows traders to express a leveraged view on Bitcoin through a traditional equity wrapper, but settled in USDT.
From a regulatory perspective, these products are structured as perpetual contracts (inverse or linear) rather than actual securities, which allows Bybit to offer them to a global audience, including jurisdictions where direct access to US ETFs might be restricted. However, this also raises questions about compliance, as the CFTC and SEC have recently scrutinized crypto exchanges offering derivatives on US equities. The 25x leverage on volatile assets like SPXL (3x S&P) and MSTU (2x MSTR) amplifies risk, and Bybit’s fee incentives are clearly aimed at boosting liquidity and attracting traders.
This listing also underscores a broader trend: crypto exchanges are increasingly becoming ‘all-in-one’ trading platforms, bridging the gap between digital assets and traditional markets. Bybit already offers commodities, forex, and now equities, positioning itself as a competitor to traditional brokers. The move could pressure other exchanges like Binance or OKX to follow suit, further blurring the lines between crypto and TradFi.
Forward-Looking Perspective
As the market matures, we can expect more crypto exchanges to list tokenized equities and ETFs, especially those with high volatility and retail appeal. The success of these products will depend on liquidity, regulatory clarity, and how well they handle market hours (US equities trade during specific hours, while crypto is 24/7). Bybit’s use of perpetuals solves this by allowing continuous trading, but it also introduces funding rate dynamics that differ from traditional equity markets.
Investors should be cautious: leveraged products like SPXL and MSTU are designed for short-term trading, not long-term holding, due to volatility decay. The 25x leverage on these products can lead to rapid liquidations. Nevertheless, for sophisticated traders, these instruments offer a novel way to hedge or speculate on US markets with crypto collateral.
In the long run, this integration could pave the way for more regulatory innovation, as exchanges may seek licenses to offer fully regulated security tokens. For now, Bybit is leading the charge in creating a seamless bridge between crypto and Wall Street.
