Kalshi revealed that the company has launched perpetual contracts linked to gold and silver, and these related products have been approved by the US Commodity Futures Trading Commission (CFTC) this week. This means that following its crypto perpetual contracts, Kalshi is further expanding this product type into the precious metals market.
First non-crypto perpetual product approved
Kalshi Previously, at the end of May, it was approved to launch perpetual contracts linked to crypto assets. The company stated that since their launch, the cumulative notional trading volume of such contracts has reached $44 billion.
The gold and silver perpetual contracts that were approved this time were initially submitted in July and were released on CFTC this week, followed by their official launch on Thursday. According to Kalshi, this is the first time the United States has approved such perpetual contract products related to non-cryptocurrency assets.
The platform continues to expand the scope of contracts.
Perpetual contracts usually do not have an expiration date, and investors are not required to hold the corresponding spot assets. The product price tracks the trend of the underlying asset and is linked to the spot market through mechanisms such as funding rates.
Kalshi Klear Chief Risk Officer Udesh Jha stated that the reason the company has identified precious metals as the next area for expansion is due to the high interest in such commodities from the market, especially gold and silver, which receive more attention in the context of inflation.
Traditional futures exchanges face competitive pressures
After Kalshi launched perpetual contracts, the business models of traditional futures exchanges have come under market attention. Previously, the stock prices of Cboe and CME Group had declined due to investors' concerns that the new type of contracts would impact their existing businesses.
Among them, CME also sued CFTC, attempting to prevent such perpetual contracts from being approved in the United States, on the grounds that regulatory authorities should not approve related products in the existing manner.
On the other hand, Kalshi emphasizes that the early growth in transactions is related to its status as a regulated platform. The company is also seeking to launch more types of perpetual contracts, including US stocks, industrial metal copper, and products related to foreign exchange.
Additional information:CNBC discloses at the end of the text that it has a business cooperation relationship with Kalshi, which includes customer acquisition cooperation and a small amount of equity investment.
