Crypto’s most popular derivative has officially made its way to US-regulated precious metal markets.
Kalshi said Thursday it has officially launched perpetual futures contracts tied to gold and silver following approval from the Commodity Futures Trading Commission on Wednesday.
Perpetual futures, or “perps,” allow traders to make leveraged bets on an asset’s price without an expiration date.
Unlike traditional futures, traders can maintain their position indefinitely instead of periodically rolling into a new contract. That’s seen as more efficient and cost-effective for assets without clear expiration dates like bitcoin and ether.
These products have already earned some credit from Wall Street for how their offshore versions helped lead Wall Street’s pricing, including during the outbreak of the US war with Iran in March and ahead of SpaceX’s banner IPO in June. But how much these speculative instruments threaten the US futures market’s most powerful incumbents, including CME (CME), Cboe (CBOE), and the New York Stock Exchange parent company Intercontinental Exchange (ICE) remains an open question.
The CFTC approved crypto perps in May. But the approval of metal perps marks a new milestone. Kalshi has also sought approval for perps tied to foreign currencies, interest rates, crude oil, and stock indexes. The CFTC has said it plans to consider new asset classes on a case-by-case review.
The 24/7 products are also known for offering easy access to leverage, which has proven highly popular with retail investors. Kalshi said its crypto perps generated $5.5 billion in trading volume in the first two weeks after its July launch. And for the three weeks ending Sept. 2, perp trading volume reached $13.7 billion, nearly twice its level for all of July.
