Dragonfly Managing Partner Haseeb Qureshi stated on The Rollup show that the largest bull market in digital assets has begun and shared his positioning logic.

He expressed extreme optimism towards perpetual contracts, asset tokenization, and prediction markets. Dragonfly is allocating around $4 billion by category, placing treasury products in the weakest defensive tier, and predicts that perpetual contracts will outperform tokenization in the coming year, even though the ranking may reverse in five years.

Haseeb mentioned that real-world assets account for about half of Hyperliquid's perpetual trading, and the competition is no longer with Coinbase, but with the Intercontinental Exchange and Nasdaq, thus expanding the addressable market by an order of magnitude. He also noted that Variational's pricing model and order book are running in parallel, while NEAR is working on cross-chain account abstraction.

In terms of prediction markets, he outlined the confrontation between Polymarket and Kalshi, as well as Kalshi's lawsuit against various states and its path to bring federal priority to the Supreme Court. State attorneys general are collectively suing prediction markets, and advertising has entered a blitz phase; discussions have also emerged regarding Kalshi's wash trading being investigated by the Commodity Futures Trading Commission.

On the privacy front, he referred to Zcash as a resistant response to the compliance of Bitcoin ETFs and disclosed his personal investment in a Zcash wallet, with the logic being to make money first and then hide it in the privacy layer.

In market mechanisms, funds are shifting from a single crypto-native token testing ground to traditional asset on-chain trading. Buyers are institutions and retail looking for leverage, compliant entry, and event odds; sellers are small to medium protocols that cannot provide Nasdaq-level experiences and legal firepower. Event-driven factors include the surge in RWA transaction share, conflicts in state laws for prediction markets, and the privacy rebound after ETFs push Bitcoin into a transparent track. Beneficiaries are perpetual platforms that first streamline user experiences and capture traditional asset transactions, while those under pressure are products with weak defensibility that can only rely on treasury narratives to attract funds.

It was publicly described that perpetual contracts still only account for about 1% of the entire derivatives market, serving as a benchmark for its bullish potential.

Source: Public Information