• BitGo published a market analysis outlining how institutions use crypto derivatives to hedge risk, manage volatility, and gain synthetic exposure.
• It highlighted three main instruments: futures, options, perpetual futures, with different settlement structures, cost profiles, and risk exposures.
• Perpetual futures were framed as tools for indefinite hedges, with funding rates typically charged every 8 hours as the main ongoing cost.
• The analysis flagged counterparty risk, leverage-driven liquidation risk, and regulatory uncertainty as key constraints on institutional adoption.
• It cited bitcoin derivatives as a common entry point for institutions, due to higher volumes and tighter spreads than other digital assets.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. BitGo Holdings Inc. published the original content used to generate this news brief on October 13, 2026, and is solely responsible for the information contained therein.