Key facts
- Kalshi received approval from U.S. regulators to offer perpetual futures contracts on Bitcoin.
- This approval marks the first time a U.S.-based firm has been cleared to offer such a product.
- Perpetual futures, or 'perps,' are derivatives contracts without a fixed expiry date, often used with high leverage.
- The move has initiated a debate among financial experts regarding the regulatory classification of these contracts.
- Last year, global crypto exchanges saw $86 trillion in perpetual futures trading volume.
Kalshi has become the first U.S.-based firm to receive regulatory approval to offer perpetual futures contracts on Bitcoin, a move that has ignited a debate among derivatives experts about how these instruments should be classified. Perpetual futures, known as 'perps,' are a type of derivative contract that does not have a set expiry date, making them attractive to traders who do not intend to take physical delivery of the underlying asset. They also commonly allow for high leverage, which has contributed to their popularity among retail traders.
Last year, the global crypto market saw an immense $86 trillion in trading volume for perpetual futures, according to data from CoinGecko. Kalshi's CEO, Tarek Mansour, has indicated that there is significant demand for this type of trading. The approval from the Commodity Futures Trading Commission (CFTC), under Chairman Mike Selig, is seen as a historic step in bringing a highly liquid segment of the crypto market within the U.S. regulatory framework. Selig has been a proponent of establishing clear regulations for perpetuals since his confirmation.
Beyond cryptocurrency, perpetual futures have also found traction with non-crypto traders, who use them to speculate on commodities like oil, especially during weekends, or to bet on the performance of pre-IPO companies. Kalshi co-founder Luana Lopes Lara noted that the development of this product began in December 2024. While platforms like Coinbase offer similar products in the U.S., they have hesitated to launch true perpetual futures due to regulatory uncertainty. In contrast, blockchain-based exchanges like Hyperliquid have seen substantial growth, attracting traders, including those in the oil market.