Perpetual futures, a staple in the crypto trading world, have officially arrived in the US regulated market, with Kalshi and Coinbase receiving approval to offer these contracts. The product has garnered significant attention, with trading volume reaching $1 billion within a week of launch. However, despite the promising start, traditional Wall Street banks are hesitant to dive in, citing the need for clearer regulations, more robust infrastructure, and increased liquidity. Instead, proprietary trading firms, market makers, and newer clearing firms are likely to be the first movers.
The potential use cases for perpetual futures extend beyond speculation, with possibilities for managing weekend risk and providing a source of price discovery. Nevertheless, regulatory debates and competitive disputes are emerging, with industry insiders suggesting that some opposition may be driven by incumbent exchanges seeking to protect their existing businesses.
As the market continues to evolve, it remains to be seen whether perpetual futures will become a mainstay of traditional Wall Street trading or remain a niche product.