Perpetual futures have spent years as one of crypto’s most popular trading products, especially for investors outside the United States. Now that the contracts are entering regulated American markets, Wall Street is trying to decide whether they are a passing retail craze or a lasting threat to traditional futures.
The early numbers have been hard to ignore.
Kalshi’s perpetual futures topped $1 billion in trading volume within a week of launch in June, making them the company’s biggest product debut since prediction markets. The exchange has since sought regulatory approval to offer perpetual futures tied to gold and silver, a sign that the product may not stay confined to bitcoin (BTC) and other digital assets.
Perpetual futures, often called perps, resemble standard futures contracts but do not expire. Traders do not need to close or roll a position into a new contract each month or quarter. Instead, periodic funding payments…
