Kalshi, a prediction markets platform, is actively pursuing regulatory approval to introduce perpetual futures contracts for new asset classes, including foreign exchange (FX), metals, and energy. Udesh Jha, Kalshi's chief risk officer, indicated that gold is a priority due to its attractiveness to retail investors, although their platform also sees significant institutional participation. Overall, perpetual contracts have already generated $16.1 billion in trading volume on Kalshi since their launch in May.
The company is particularly focused on FX, metals, and energy as these sectors are experiencing high investor demand driven by geopolitical factors and seasonal trends. Jha noted that much of the existing trading volume comes from institutional clients. However, the exact timing and scope of these new offerings are still under discussion with regulators, with the Commodity Futures Trading Commission (CFTC) currently seeking public input on expanding perpetual contracts for storable energy commodities like crude oil.
Perpetual futures, also known as "perps," are unique because they lack an expiration date, allowing investors to hold positions indefinitely. They also enable significant leverage, sometimes up to 50 times the contract value, which can amplify gains but also risks. The introduction of these products has stirred controversy, with critics like CME's outgoing CEO Terry Duffy warning of potential risks for retail investors and calling them a "disaster waiting to happen." CME has even sued the CFTC over its decision to allow Kalshi and Coinbase to list perpetual futures.
Trading of any approved perpetual futures in these new asset classes would occur during standard trading hours, not around the clock, according to sources familiar with the ongoing considerations. Kalshi's move into these new markets, following the CFTC's May decision to permit U.S.-registered platforms to offer crypto-based perpetuals, has been perceived as a competitive threat by traditional derivatives exchanges such as CME, CBOE, Nasdaq, and Intercontinental Exchange, whose stock prices saw a sharp selloff after the initial approval.
