Kalshi is trying to take one of crypto’s most distinctive trading products into traditional markets. On August 18, the federally regulated exchange submitted two proposals to the CFTC for approval of perpetual futures contracts based on a major US stock index and copper. If approved, the contracts would bring a structure that originated in the cryptocurrency area to stocks and commodities.
This is important as perpetual futures, or perps, have become a fundamental part of crypto trading. Researchers from Cornell University estimate that perpetual futures comprise 93% of the entirety of crypto derivatives trading. The concept behind their popularity is simple. Traders can maintain their leveraged trades without the need to roll the contracts at expiration, and at the same time receive regular funding payments which keep the prices aligned with the underlying market.
The idea behind perpetual futures is not new. Economist Robert Shiller proposed a structure for perpetual futures trading back in 1993.
“A perpetual futures contract is proposed that would cash settle every day…” — Robert J. Shiller, 1993.
It was in crypto, however, where the product gained broader recognition.
A stock index and a metal, priced off a Pyth feed
The US500 Contract by Kalshi will monitor an index called the MerQube US Large Cap Index, which consists of the largest 500 companies that are listed in the US and uses float-adjusted market cap for their weighting.
The second proposed contract is called COPPERPERP, which is used for measuring the present price of copper in dollars per pound using the XCU/USD data feed from the Pyth Network.
At present, neither of the products has received approval. Their filings fall under Regulation 40.3, which means that Kalshi must wait for the CFTC’s sanction before launching the products.
Perpetuals differ in structure from conventional futures contracts in that they do not have an expiry date. Traders can hold long or short positions for an unlimited time period, where funds are paid out to keep the perpetual aligned with the underlying price.
From a Bitcoin contract in May to equities in August
Kalshi’s transition into non-crypto perps comes after the regulatory opening that took place earlier this year.
On May 29, the CFTC greenlit Kalshi’s BTCPERP contract and released a statement indicating that perpetual contracts other than this one would be reviewed under Regulation 40.3.
Bitcoin perps launched in early June and were later joined by Ether, XRP, and several other crypto-assets.
Cryptopolitan has reported that Kalshi now offers perpetuals across 13 cryptocurrencies.
The stock index and copper filings take the same idea much further. For an exchange best known for event contracts, they are another step toward competing as a broader derivatives venue.
Why crypto traders should care about a copper contract
However, the wider issue is not copper itself, but rather if an approach to trades that is rooted in crypto can be useful for traditional assets.
In its 2026 Crypto Market Outlook report, Coinbase Institutional put forward this idea.
“Equity perps could become the preferred choice for a new generation of retail traders.” — Coinbase Institutional
Coinbase highlights constant accessibility and efficient use of funds as the main selling points. Furthermore, it is convinced that perps are no longer merely leveraged products but are gradually becoming elements of lending, collateral, and hedging systems.
In case regulated exchanges in the US manage to include perps in stocks and commodities, crypto will have exported one of its most effective market structures to conventional financial markets. Additionally, it can create a more competitive landscape for trading volumes as traditional and crypto-native venues continue to intertwine.
A small book, ramping fast
At this point in time, Kalshi’s perp business still has a limited capacity.
As reported by Cryptopolitan, Kalshi’s daily open interest registered an all-time high of $17.98 million as of August 12. By contrast, Hyperliquid had around $11.7 billion in open interest over 377 trading pairs, meaning Kalshi is, for now, only about 0.15% of that amount.
Its expansion has, however, been rapid. Kalshi’s perps hit $1 billion in notional volume in a week of launch, while it took the company’s event-contract business around 40 months to hit this landmark.
However, there is some danger involved with this expansion. CME Group filed a lawsuit against the CFTC and its Chairman, Michael Selig, in June over the approval of Kalshi as well as general policy regarding perpetual contracts. CME says that this type of offering should fall under swaps and not futures.
That case, along with the CFTC’s review of Kalshi’s August filings, could ultimately decide whether US500 and COPPERPERP make it to market.
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