JPMorgan has identified several factors limiting institutional demand for perpetual futures in the crypto derivatives market. Despite their dominance, accounting for about 90% of crypto derivatives trading, perpetual futures face challenges such as unbounded basis risk and the absence of a forward term structure, which make them less appealing to commercial hedgers and asset managers. Additionally, the lack of physical delivery and concentration of trading activity among a few large participants further hinder broader institutional adoption. The bank's report highlights that perpetual futures, while crucial for price discovery and market liquidity, are dominated by a small number of large traders. According to Hyperliquid data, approximately half of the trading volume is controlled by just 12 wallets, raising concerns about market depth and the potential for these products to support wider institutional participation.