Perpetual futures, or “perps,” were popularized by crypto derivatives exchange BitMEX and have since become the dominant crypto derivatives product.
Unlike traditional futures contracts, perpetuals have no expiration date, allowing traders to maintain leveraged positions indefinitely while prices are kept in line with the underlying asset through periodic funding payments
Demand for the products has accelerated following the CFTC’s decision. According to Tuesday’s report, Kalshi’s cryptocurrency perpetual futures have generated more than $8.5 billion in trading volume within weeks of launching. The regulator’s approval has also sparked opposition from established futures exchanges.
Earlier this month, the Chicago Mercantile Exchange sued the CFTC, arguing that allowing Kalshi to list perpetual futures violates federal law and has caused “textbook competitive injury” to incumbent exchanges. Related: ICE, CME press US regulators to ‘rein in’ Hyperliquid energy trading: Report The market for perpetual futures continues to expand. Earlier this month, Coinbase launched perpetual futures tied to stock indexes, giving eligible US traders access to leveraged exposure to sectors such as artificial intelligence, defense and Chinese equities.