Hedge fund manager Stanley Druckenmiller has backed trade XYZ, a platform partnered with Intercontinental Exchange and Hyperliquid, to bring 24/7 perpetual futures to US investors. These leveraged derivatives, popular among crypto traders, allow big bets with small cash stakes on stocks, cryptocurrencies and other assets.
Druckenmiller, 73, confirmed his investment via an X post, calling himself “excited to be an investor.” His involvement adds scrutiny to the debate over perpetual contracts, which regulators at the CFTC permitted for firms like Kalshi this year, sparking a lawsuit from CME Group.
Proponents say perps offer flexibility by letting traders enter and exit anytime, while consumer group Better Markets warns they “amplify risk” by letting retail investors control positions far exceeding their capital. The products surged during the Iran war as traders used unregulated Hyperliquid to bet on energy markets.
Druckenmiller, known for macro bets on currencies and rates, recently voiced doubt about AI’s sustainability, suggesting the market may be in an “earnings bubble” amid the AI build-out.
Source: Financial Times Companies · Summarized by HeadlinesBriefing