Kalshi launches stock index perpetual futures to expand product suite

Prediction market startup Kalshi has launched a stock index perpetual future, a derivative that lacks a traditional expiration date. The new contract tracks the ‘US 500’ index, which comprises 500 of the largest companies in the United States. This instrument allows traders to hold long or short leveraged positions indefinitely without the need to roll over contracts, using a periodic funding rate to keep the contract price aligned with the index.

In an effort to expand its product suite beyond cryptocurrency and metals, Kalshi is also seeking regulatory approval for a perpetual West Texas Intermediate (WTI) crude oil contract. The proposed oil contract would utilize a structure allowing positions to remain active for up to ten years before expiration. This model aims to reduce the transaction costs and complexities associated with the traditional rollover process used in standard oil futures. The Commodity Futures Trading Commission is currently reviewing the proposal.