Kalshi Brings Perpetual Futures to Gold and Silver Commodity Trading
Kalshi, a US-based derivatives exchange, has launched perpetual futures for gold and silver, marking a new era in commodity trading. This move follows clearance by the United States Commodity Futures Trading Commission (CFTC) after Kalshi filed its application in July.
The introduction of non-crypto perpetual futures contracts is significant as it brings a widely adopted mechanism from the cryptocurrency market into commodities. Perpetual futures, or 'perps,' are contracts without an expiration date and do not require ownership of the underlying asset.
According to Kalshi's Chief Risk Officer, Udesh Jha, precious metals were chosen due to their correlation with inflation, making them a suitable fit for the firm's derivative products. The platform offers an alternative to traditional investment vehicles such as futures, exchange-traded funds (ETFs), and physical gold and silver.
Kalshi's expansion into regulated markets has been driven by increasing demand, with its commodity event contracts generating over $400 million in trading volumes within the first seven months. This growth is expected to continue with Kalshi applying for permission to offer perpetual futures based on US stock indexes, copper, and currencies.