Kalshi's Monetization of Crypto Perpetual Futures Starts This Week

A filing submitted to the Commodity Futures Trading Commission (CFTC) on 8 Jun outlined a new fee schedule for the contracts, with the regulatory waiting period expiring after 22 Jun. The fees will mark the end of a promotional period during which traders could access the products without paying trading commissions. 

A Kalshi spokesperson confirmed to Sandmark that trading fees for the perpetual futures contracts are expected to take effect this week. 

The timing is notable because Kalshi's cryptocurrency perpetual futures have already generated more than $8.5bn in trading volume in less than a month of their launch, according to figures reported by The Wall Street Journal. 

Based on the proposed fee schedule, that level of activity could translate into millions of dollars in trading revenue. 

Monetizing perps 

Kalshi launched its perpetual futures products after receiving approval from the CFTC in late May, becoming one of the first regulated US venues to offer the contracts. The company initially offered fee-free trading for a limited time as part of the launch. 

Under the proposed fee schedule, traders who immediately buy or sell against existing orders would pay fees ranging from 0.12% to 0.026%, depending on their activity level. Traders who post orders and provide liquidity to the market would pay lower fees ranging from 0.05% to 0.006%. The fees would be charged on the notional value of each trade rather than profits or losses.  

Based on the reported $8.5bn in trading volume, Kalshi could theoretically have generated between roughly $3mn and $15mn in fees had the schedule already been in place, depending on the share of activity coming from retail traders, market makers and institutional participants qualifying for discounted rates. 

The additional revenue opportunity comes as Kalshi's overall business continues to expand rapidly. The company is generating revenue at an annualized pace of more than $2bn and has held discussions about a potential public listing that could occur as soon as next year, according to The Information. 

What are perpetual futures? 

Perpetual futures, commonly known as perps, are derivative contracts that allow traders to speculate on the future price of an asset without owning it directly. 

They resemble traditional futures contracts but with one important difference: they do not expire. A conventional futures contract settles on a predetermined date, forcing traders to close or roll over positions. Perpetual futures can remain open indefinitely, with a funding-rate mechanism helping keep prices aligned with the underlying asset. 

The structure has made perpetual futures a popular product in crypto derivatives markets, where traders often use them to take leveraged positions on Bitcoin, Ether and other digital assets. 

CME challenge  

Perpetual futures were largely unavailable to US retail traders until late May, when the CFTC approved Kalshi's contracts and outlined a framework that could allow other registered venues to offer similar products.  

The move sparked a lawsuit from CME Group, which argues that because perpetual contracts lack an expiration date, they more closely resemble swaps than traditional futures. CME claims the CFTC unlawfully allowed the products to be listed without subjecting them to the regulatory requirements that apply to swaps under the Dodd-Frank Act.