Perpetual futures, a staple in the crypto trading world, have officially entered the US market, with Kalshi and Coinbase receiving regulatory approval. The product has garnered significant attention, with trading volumes reaching $1 billion within a week of launch. However, big banks are hesitant to dive in, citing the need for clearer regulations, improved infrastructure, and increased liquidity. Proprietary trading firms and market makers are expected to lead the charge, while banks take a more cautious approach.
The potential use cases for perpetual futures extend beyond speculation, with possibilities for managing weekend risk and providing price discovery. Despite the promise, the market faces challenges, including regulatory uncertainty and thin weekend liquidity.
As the market evolves, industry insiders anticipate a competitive landscape, with exchanges and trading firms vying for market share.