Summary
- Kalshi has submitted a proposal to the CFTC for a perpetual futures contract linked to copper prices.
- This new contract will utilize price data from Pyth Network and will not have an expiration date.
- In addition, Kalshi is seeking approval for stock-index perpetuals following its earlier success with Bitcoin perpetuals in May.
Kalshi, a platform specializing in prediction markets, has filed a proposal with the Commodity Futures Trading Commission (CFTC) to introduce perpetual futures contracts based on copper prices.
The application, filed on August 18, outlines the COPPERPERP contract, which is designed to track the spot price of copper in U.S. dollars per pound. It will rely on price data from Pyth Network, a blockchain-based provider that compiles pricing information from various exchanges and financial institutions.
Myriad: What will Bitcoin's next price move be? Make your prediction here.This filing marks a significant step for Kalshi as it moves beyond traditional event-based prediction markets, just days after a court in Washington instructed the company to cease offering bets on sports, elections, and similar events within the state.
Unlike conventional futures contracts, perpetual futures, often referred to as “perps,” do not have an expiration date, allowing traders to maintain their positions indefinitely without needing to transition to a new contract. Earlier this year, competitor Polymarket announced plans to introduce perpetual futures, highlighting companies such as Nvidia and Coinbase.
The Copper Perp contract, as detailed in Kalshi's filing, will be cash-settled, meaning that no physical copper will be exchanged. Instead, periodic payments between long and short positions will ensure that the contract price remains aligned with the actual copper market price.
Copper is an essential industrial metal, utilized in power grids, construction, electric vehicles, electronics, and the infrastructure for AI data centers. It is actively traded on major futures markets like CME’s COMEX, the London Metal Exchange, and the Shanghai Futures Exchange.
This development follows the CFTC's approval in May for Kalshi to offer Bitcoin perpetual futures, signaling the platform's ongoing growth into the derivatives space.