Kalshi, a company best known for its prediction markets, is preparing to launch a new futures market focused on inflation metrics. The exchange-traded futures offering is expected to debut in December, according to a report by Bloomberg News. The contracts will track key inflation indicators like the Consumer Price Index (CPI) and the core inflation gauge, which excludes food and energy costs.
The company has partnered with Michael Ashton, a former Barclays trader known as the “Inflation Guy,” to design these contracts and attract major investment firms. Kalshi aims to be the first exchange to offer futures directly linked to CPI, positioning itself as a competitor to traditional platforms like CME and Intercontinental Exchange, which offer interest-rate and bond futures.
Kalshi CEO Tarek Mansour highlighted the importance of inflation as a pressing issue for Americans, noting the lack of effective tools to predict future inflation rates. The company has been expanding its offerings beyond sports predictions, venturing into derivatives for metals, foreign exchange, and energy markets. In September, Kalshi received approval from the Commodity Futures Trading Commission (CFTC) to list precious metals-related perpetual futures, including those for gold and silver.
Additionally, Kalshi has collaborated with BitGo to allow certain customers to use eligible cryptocurrencies as collateral for leveraged perpetual futures trades. This move is intended to cater to investors who prefer to hold their bitcoin or avoid using stablecoins for their operations.