Kalshi has received clearance from the Commodity Futures Trading Commission (CFTC) to launch perpetual futures contracts for gold and silver, marking the first time non-crypto perpetual futures have been cleared in the United States. The company filed for approval in July and began offering the products on Thursday. Perpetual futures, or “perps,” are contracts without an expiration date that use an automatic funding system to track market prices. Kalshi aims to provide a simpler way to gain exposure to precious metals without physical storage or the costs associated with futures rollovers and exchange-traded fund management fees. Chief risk officer Udesh Jha stated that gold and silver correlate closely with inflation. The launch follows Kalshi’s earlier CFTC-approved Bitcoin perpetual contract in late May.
Kalshi has introduced perpetual futures for gold and silver following clearance from the United States Commodity Futures Trading Commission (CFTC). The company filed for this approval in July and launched the products on Thursday.
Perpetual futures, commonly known as “perps,” are contracts without an expiration date. Unlike traditional futures, they do not require the holder to own the underlying asset, and an automatic funding system ensures the contract price follows the market price.
Kalshi’s platform offers exposure to gold and silver without physical purchase or storage. According to Kalshi, their products avoid futures rollover costs, exchange-traded fund management fees, and the storage and transportation expenses of physical precious metals.
Udesh Jha, chief risk officer at Kalshi, stated that precious metals were an obvious market choice given the appetite for commodity exposure. “Gold and silver share a close correlation with inflation,” Jha said on CNBC, noting they make an ideal fit for the firm’s derivative products.
Kalshi’s commodity event contracts generated over $400 million in trading volume in the first seven months. The company’s crypto perpetual futures have accumulated a notional volume of $44 billion since their launch in late May, when the CFTC approved a Bitcoin perpetual contract.
Kalshi is seeking approval to offer perpetual futures on U.S. stock indexes, copper, and currencies. The company’s expansion has drawn competition from existing derivatives exchanges such as CME Group and Cboe Global Markets. CME Group later filed a legal case regarding the CFTC’s approval of the contracts.
