Kalshi’s Bitcoin Perp Crosses $1 Billion Volume in One Week

Key Insights

• Kalshi’s Bitcoin perp volume crossed $1 billion in the first trading week
• Kalshi says the product surged and is its fastest-growing product ever.
• The crypto perps market has grown rapidly over the past year, thanks to the growth of Hyperliquid

Kalshi’s newly launched Bitcoin perpetual futures generated more than $1 billion in notional trading volume during their first week. The prediction market platform highlighted the milestone as evidence of strong demand for regulated crypto derivatives in the United States.

The launch could pave the way for additional crypto perpetual futures products. Kalshi has also pursued listings for several other crypto-linked contracts as it expands its derivatives offering.

Crypto Perp Now Kalshi’s Fastest Growing Product

According to CNBC, citing Kalshi, the massive volume in Bitcoin perps now makes crypto perp the platform’s fastest-growing product ever.

Interestingly, its flagship product, event prediction contracts, did not reach $1 billion in volume until after 40 months.

Still, perp volume is not surprising given the massive interest in the product. Kalshi’s Bitcoin perp is the first true crypto perpetual contract to list in the US. The platform spokesperson stated that its waitlist for perps had over 1 million before it launched.

Unsurprisingly, the product saw $100 million in volume within the first 24 hours. However, the rapid rise in volume reflects notional volume, which accounts for the leverage traders use.

Globally, crypto perps have an annual notional volume of over $90 trillion, reflecting the global interest in perpetual contracts.

More Exchanges to Offer Crypto Perps in US as Hayes Warns Hyperliquid May Lose Edge

Meanwhile, Kalshi might soon find itself competing with crypto exchanges that are also planning to offer crypto perps. On the same day that the CFTC approved its Bitcoin perp, Coinbase also got approval to offer perps through an affiliate.

However, other US-based exchanges are also preparing to list their own crypto perps. Backpack US is the latest to announce that it will expand perps trading to the country, as stated in an announcement on Tuesday.

With more established crypto exchanges such as Coinbase, Kraken, and Gemini, and brokerage platform Robinhood set to offer perps trading, Kalshi could soon face stiffer competition in the US.

Interestingly, crypto entrepreneur Arthur Hayes has said that traditional Wall Street exchanges will likely launch perps soon. According to him, TradFi and centralized exchanges will prove a strong challenge for  Hyperliquid.

The decentralized perps exchange has been the poster child for the sector, with the majority of the volume for perp DEXs.

Beyond crypto perps, real-world asset (RWA) perps are a major draw for Hyperliquid activity, but Hayes believes TradFi exchanges will soon launch competing products.

The post Kalshi’s Bitcoin Perp Crosses $1 Billion Volume in One Week appeared first on The Market Periodical.