Kalshi has gained approval from the Commodity Futures Trading Commission (CFTC) to list perpetual futures contracts tied to precious metals, specifically gold and silver, marking a strategic expansion beyond its original focus on prediction markets. Initially filed in July, the approval culminated in the launch of these contracts on the platform this week.
This advancement follows Kalshi’s earlier approval for perpetual futures in cryptocurrency, a sector expected to see substantial growth with projected annual trading volumes reaching $90 trillion by 2025. The initial cryptocurrency contracts have already generated $44 billion in notional volume since their introduction in late May.
Udesh Jha, Chief Risk Officer at Kalshi Klear, the platform’s clearing house, highlighted a growing interest in metals driven by inflation concerns. In just seven months, Kalshi’s commodity-related event contracts, encompassing various resources like oil, have surpassed $400 million in trading volume, achieving the milestone in half the time taken by its crypto contracts.
Perpetual futures, often referred to as "perps," are unique in that they have no expiration dates and do not mandate ownership of the underlying asset. Instead, they track asset prices and are supported by a funding mechanism to align with market values.
In addition to metal contracts, Kalshi is seeking CFTC approval for perpetual futures related to U.S. equities, industrial metals, and currencies. The approval of these precious metal contracts marks Kalshi’s first venture into non-crypto futures. Meanwhile, traditional exchanges such as CBOE and CME Group have expressed concerns over potential disruptions to their business models, leading CME to file a lawsuit against the CFTC regarding the approval process.
Jha emphasized that the regulatory nature of Kalshi’s platform is a key factor contributing to the early success of its perpetual futures offerings.
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