Kalshi, a regulated exchange and prediction market platform, plans to launch products giving investors a new way to speculate on popular metal prices.
Earlier this week, the platform filed for regulatory approval for perpetual futures for gold, silver, and platinum.
These contracts — also known as ‘perps’ — represent a type of derivative that does not expire. They have built-in leverage designed to amplify the risk investors are taking with each trade.
However, such products have faced pushback from CME Group, which last month sued the Commodity Futures Trading Commission (CFTC) for approving Kalshi’s launch of crypto-linked perps.
With a potential expansion into hard commodities, Kalshi will enter an already crowded marketplace dominated by CME in the US.
The precious metals contracts, if approved by the CFTC, will initially trade 24 hours a day, five days a week, matching the hours of the underlying markets, rather than the 24/7 schedule offered for crypto.
The company also plans to follow that up with the launch of copper and palladium contracts.
“Copper has a very strong story correlated with what’s happening in the AI and computing marketplace, in addition to the natural uses of copper over these years,” Kalshi Chief Risk Officer Udesh Jha said in an interview with Bloomberg.
Write to Jackson Chen at Mining.com.au
Image: Pixnio
