Perpetual futures, a staple in the crypto trading world, have officially arrived in the US, with companies like Kalshi and Coinbase receiving regulatory approval to offer these contracts. With estimated annual volumes of $90 trillion, according to Bank of America, this product has become a core part of global crypto trading. However, its introduction to Wall Street has been met with caution, as large financial institutions are hesitant to fully embrace it due to concerns over liquidity, rules, and infrastructure.
Instead, proprietary trading firms, market makers, and newer clearing firms are more likely to be the first movers. The potential use cases for perpetual futures extend beyond speculation, as they could help traders manage weekend risk and provide a source of price discovery.
Despite the demand, the market's depth and regulatory framework remain key challenges to be addressed. As the regulatory landscape continues to evolve, industry insiders anticipate that the treatment of perpetual contracts as either futures or swaps will be a crucial factor in determining margin rules, registration duties, and who can provide liquidity.