Prediction market operator Kalshi has filed a request with the US Commodity Futures Trading Commission (CFTC) to offer perpetual futures contracts in precious metals including gold, silver, and platinum. This move marks an expansion of Kalshi’s product lineup and reflects growing interest in perpetual futures, a derivative instrument originating from cryptocurrency markets that allows continuous, leveraged trading without an expiration date.
Perpetual futures have gained traction among retail investors as they provide the ability to trade market direction around the clock. This was particularly evident in February when US President Donald Trump ordered strikes against Iran on a Saturday, a time when traditional markets were closed. Traders turned to perpetual futures linked to oil prices on platforms like Hyperliquid to respond to rapidly changing conditions. Recognizing the demand for 24-hour trading, the CFTC granted Kalshi and other platforms earlier approval to offer perpetual futures tied to cryptocurrency prices within the United States, providing a regulated alternative to offshore exchanges.
Kalshi currently offers prediction markets on various commodities, including oil and gold, but these do not operate as perpetual contracts. Unlike traditional futures, perpetual contracts settle multiple times daily, which helps maintain their alignment with underlying spot prices. While positions remain open, exchanges update profit and loss in real time based on global market shifts. This structure has allowed newer exchanges like Kalshi to gain ground in 24/7 trading, intensifying competition for established market players.
The Chicago Mercantile Exchange (CME), a major traditional venue, has sought to compete by developing similar offerings. However, its initial attempt to launch a round-the-clock oil futures product was rejected by the CFTC earlier this year. CME has a second application under review and is preparing to introduce a 24-hour gold futures contract that, unlike perpetuals, carries a fixed expiry date. CME declined to comment on Kalshi’s application.
In a recent development, CME filed a lawsuit against the CFTC regarding the regulator’s decision to permit Kalshi and others to offer crypto-linked perpetual futures, which were previously prohibited in the US. CME contends that the CFTC’s ruling violates established regulatory frameworks. Kalshi has dismissed CME’s challenge, describing the objection as a “red herring” in its filing.
The ongoing regulatory scrutiny and market competition highlight the evolving landscape of derivatives trading in the US. Kalshi’s push for perpetual precious metal futures underscores the broader trend of innovation driven by demand for flexible, round-the-clock trading opportunities. Meanwhile, traditional exchanges like CME continue to navigate both regulatory and market challenges in their efforts to maintain relevance.