Kalshi perpetual futures top $1 billion as Wall Street banks wait

Kalshi perpetual futures linked to bitcoin and other digital assets surpassed $1 billion in trading volume within a week of their June launch, CoinDesk reported Monday. The rapid start has put a regulated U.S. version of a major crypto trading product in front of Wall Street banks, many of which are still assessing whether the market has enough liquidity, regulatory clarity and operational support for them to take part.

The Commodity Futures Trading Commission has approved both Kalshi and Coinbase to list perpetual futures in the United States, according to the report. That approval shifted the products out of a regulatory gray area and into a framework governed by federal derivatives law, while leaving future contracts tied to additional assets subject to individual regulatory review.

CoinDesk reported that trading firms and crypto exchanges have been quicker to accept the products than traditional banks. Proprietary trading firms, market makers and newer clearing firms are expected to be among the next participants to enter the market, while large banks are likely to wait as trading depth, rules and infrastructure develop.

What are perpetual futures?

A perpetual future is a derivatives contract that gives traders exposure to an underlying asset without a fixed expiration date. The structure is widely used in crypto markets and, according to an April report, accounts for more than 70% of volume on centralized cryptocurrency exchanges.

The appeal for active traders is that a position can remain open without rolling from one dated futures contract into another. The risk is that price moves against a leveraged or poorly understood position can produce large losses, and critics cited by CoinDesk warn that retail investors may not fully understand those mechanics.

Kalshi, a regulated prediction market, is using the CFTC approval to extend beyond its existing business into derivatives. The company said in a July 9 report that it aimed to expand into products tied to metals, foreign exchange and energy markets, and to compete with traditional exchange operators through non-expiring derivatives.

That expansion is already moving beyond crypto. CoinDesk reported that Kalshi is seeking regulatory approval to list perpetual futures tied to gold and silver. Under the CFTC’s approach, such contracts would be reviewed case by case rather than automatically cleared by the earlier approvals for existing listings.

Coinbase received approval alongside Kalshi to offer perpetual cryptocurrency futures to U.S. investors, according to a June 1 report. The move gave U.S.-based venues a formal route to list a product that has long been central to offshore crypto trading activity.

For banks, the calculation is different from that of specialist trading firms and exchanges. CoinDesk reported that traditional Wall Street institutions are weighing whether the current surge reflects durable demand or a retail-driven phase that could fade before the market reaches institutional scale.

The caution reflects several unresolved issues: whether order books become deep enough for large participants, how clearing and risk management arrangements develop, and how regulators treat contracts tied to assets outside the initial approved set. Until those questions are clearer, the early U.S. market for perpetual futures is likely to be led by Kalshi, Coinbase and trading firms rather than the largest banks.

This story draws on original reporting from PYMNTS.