Perpetual futures, a staple in the crypto trading world, have officially entered the US market, with Kalshi and Coinbase receiving regulatory approval to offer these contracts. The product has garnered significant attention, with trading volumes reaching $1 billion within a week of launch. However, large financial institutions are adopting a wait-and-see approach, citing the need for clearer regulations, improved infrastructure, and increased liquidity.
Unlike smaller trading firms, which have more freedom to test new markets, big banks face stricter capital rules and reputational risks, making them more cautious in their approach. The potential use cases for perpetual futures extend beyond speculation, with possibilities for managing weekend risk and providing a source of price discovery.
Nevertheless, the market's depth and regulatory framework remain key concerns, with industry insiders anticipating a competitive and potentially contentious environment as exchanges push to expand perpetual futures into traditional markets.